30 Apr 2013 10:00
Kcell JSC
Proposed Special Dividend
Almaty, April 30, 2013 - Kcell Joint Stock Company ("Kcell" or the "Company") (LSE, KASE: KCEL), the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and subscribers, announces that its Board of Directors has recommended the payment of a special dividend representing 100 percent of the Company's net income, or KZT 32,402 million ("the Proposed Special Dividend"), for the period between 1 July, 2012 to 31 December, 2012 ("the Period").
The proposed record date of Shareholders entitled to receive the dividend is 10 June, 2013 (00:00 Almaty time) and it is intended that the payment process will begin on 24 June, 2013 with all payments being made no later than 30 June, 2013. The size of the proposed special dividend as well as the record date is subject to the approval of Kcell's shareholders at the Annual General Meeting, which is scheduled for 24 May, 2013 at 11:00 AM local time.
Following the payment of the Proposed Special Dividend for this period, it is anticipated that all future dividend payments will reflect the Company's dividend policy, which envisages distribution of at least 70% of the Company's net income for the previous reporting year, with any additional excess capital also being returned to shareholders after the Board of Directors has taken into consideration the amount of cash the Company has at hand, its cash flow projections and its investment plans in the medium-term perspective, as well as capital market conditions.
Enquires
Kcell | |
Investor Relations | |
Irina Shol | Tel: +7 727 2582755 ext. 1205 Investor_relations@kcell.kz |
Media Natalya Eskova |
Tel: +7 727 2582755 Pressa@kcell.kz |
International Media | |
College Hill | Tel: +44 207 457 2020 |
Leonid Fink, Tony Friend, Kay Larsen |
Company Overview
Kcell is the leading provider of mobile telecommunications services in Kazakhstan by market share in terms of revenue and the number of subscribers. It has operated since 1998, and as at 31 December 2012 it had approximately 13.5 million subscribers, representing a market share of 46.9%, as estimated by the Company. Its estimated market share in terms of revenue was 54.5% for the year ended 31 December 2012.
Kcell provides mobile voice telecommunications services, value-added services such as short message services, multimedia messaging services and mobile content services, as well as data transmission services including internet access. It has two brands: the Kcell brand, which is targeted primarily at corporate subscribers (including government subscribers), and the Activ brand, which is targeted primarily at mass market subscribers. The Company offers its services through its extensive, high quality network which covers substantially all of the populated territory of Kazakhstan.
Kcell benefits from operating in the fast growing emerging economy of Kazakhstan. In 2012 Kazakhstan's real GDP growth was 5.5%, according to the Economist Intelligence Unit (EIU). Real GDP per capita has been growing at a compound annual growth rate of 5.9% since 2009 to reach US$13,835 in 2012, according to the EIU.
In December 2012, Kcell successfully completed its offering of GDR's on the London Stock Exchange and common shares on KASE. The price was set at USD 10.50 per GDR and KZT 1,578.68 per share with each GDR representing one share. The offering consisted of a sale by TeliaSonera of 50 million shares, including shares representing 25 percent of Kcell's share capital. TeliaSonera holds directly and indirectly 61.9% of the Company's common shares.
Kcell plans to benefit from the significant growth potential for mobile data services in Kazakhstan. The Company intends to continue to invest in the deployment of its 3G network to expand coverage. Kcell aims to maintain its market leadership in terms of revenue and the number of subscribers by offering its products and services at competitive prices, expanding its offering of products and services, maintaining the high quality of its network and enhancing its brand value.