A consortium led by Xavier Niel-owned investment company NJJ Holding completed the acquisition of Ukrainian operator Lifecell from Turkcell for US$524.3 million, with aims to merge it with fixed telecom and pay TV provider Datagroup-Voila.
The transaction was completed after closing fulfilment conditions and gaining all required regulatory approvals. The combined provider will serve 10 million mobile subscribers and four million residences in Ukraine.
US private equity from Horizon Capital, which is part of the consortium, said in a statement that the group will merge Datagroup-Voila with Lifecell “to create a converged telecom platform for expansion, growth and investment”.
Next steps for the new entity will be signing loan documents to gain a US$435 million joint financing package from the European Bank for Reconstruction and Development and the International Finance Corporation.
Both institutions received board approvals to dish out the loan, which will be used by the consortium to launch an investment programme to upgrade networks, acquire licenses, equipment, and expand fixed and mobile infrastructure in Ukraine.
Current CEO of Datagroup-Voila, Mykhaylo Shelemba, will lead the Lifecell-Datagroup-Voila Group as chief executive. Meanwhile, Voila Executive Chairman, Pierre Danon, will continue on as Non-Executive Chairman of the Supervisory Board. Lifecell announced in a seperate statement today that CEO Ismet Yazici will depart from the operator after a seven year tenure.
Xavier Niel, NJJ Holding and Iliad Group Founder, said: “I am pleased to announce the completion of this landmark French investment in Ukraine’s telecom sector, which we believe will provide significant and tangible benefits to customers, the market, and to the country. The closing of this landmark transaction will serve as a signal to others that Ukraine offers compelling opportunities, and that the time to invest is now.”
The consortium gained regulatory approval to acquire Datagroup-Voila earlier this year.
