Qatar's Power International Holding (PIH) has finalized its acquisition of Mobile Telecom-Service LLP (MTS) from Kazakhtelecom JSC (KT).

The deal was first announced in February of last year before a sale and purchase agreement was signed in June for $1.1 billion.

An agreement in principle for the deal was signed last February in Qatar by PIH, Kazakhtelecom JSC, and Samruk-Kazyna, Kazakhstan’s sovereign wealth fund which owns the telco.

Kazakhtelecom has owned MTS, not to be confused with the Russian telecom firm of the same name, since 2019.

In total, the MTS network - comprising the brands Tele2 and Altel - has seven million customers and is part of a consortium installing 5G base stations across Kazakhstan to improve the country’s network.

Founded in 2004, MTS employs around 2,000 staff and has more than 140 retail stores across Kazakhstan.

PIH noted that financing of the acquisition of MTS has been led by Citi and QNB as coordinators, book runners, and mandated lead arrangers, along with Halyk Bank, ICBC Standard Bank Plc, Bank of Bahrain and Kuwait B.S.C, and Commercial Bank International PJSC.

"Power International Holding's telecommunications group is a key component of the Company's strategic growth," said Ramez Al-Khayyat president of Power International Holding.

"Through this acquisition, we aim to significantly contribute to the development of the telecommunications and technology sectors, offering innovative solutions that will enhance the digital experience in Kazakhstan and empower the digital transformation of the country."

KT also part-owns Kcell, the country's biggest mobile carrier with around 10.5 million mobile subscribers.

The company's sale of MTS is part of the government's plans to demonopolize the market which has been heavily dominated by KT.

KT's major competitor in the market is Veon's subsidiary Beeline Kazakhstan.