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Reasons for the sale, which was initially announced back in December, have not been specified
NJJ Capital, the investment company owned by French billionaire Xavier Niel, has agreed to buy Turkcell’s Ukrainian operations, including mobile operator Lifecell, for at least $500 million.
The agreement was initially signed in December when Turkcell agreed to transfer over all shares in the businesses to NJJ for an undisclosed price. At the time, the three business units – mobile operator Lifecell, contact centre specialist Global Bilgi, and telecoms tower firm Ukrtower – were valued at UAH 12.7 billion ($335.5 million), UAH 47.2 million ($1.2 million), and UAH 1.9 billion ($50 million), respectively.
The deal “makes sense”, according to Niel, due in part to his existing telecoms operations in neighbouring Poland through French telco Iliad, given the large amount of roaming traffic between the two countries.
For Lifecell in particular, Niel noted that the sale was relatively cheap, saying “it’s an asset we’re not paying very much for compared to its profits”.
The final price for the acquisition will not be revealed until the deal has closed, but it should be at least $500 million, according to an NJJ spokesperson.
The deal is still subject to regulatory checks, including the go-ahead from the Ukrainian competition authority.
Niel appears to have started this year with a renewed appetite for M&A, this month also showing an interest in purchasing Altice Portugal. The company is part of the Altice Group and is owned by another French billionaire, Patrick Drahi, who announced his intention to sell off the unit last summer. The unit has attracted a number of potential buyers, including Saudi-based STC and others who have asked not to be identified. –Three non-binding offers for the business are thought to have been received.
No decisions have yet been made of yet and discussions remain ongoing.
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