A consortium of investors led by French billionaire Xavier Niel's company has completed the acquisition and merger of Ukrainian mobile operator Lifecell with service provider Datagroup-Volia.
According to Horizon Capital, which participated in the deal, reported that Lifecell, the third-largest mobile operator in Ukraine after Kyivstar and Vodafone, will merge with Datagroup-Volia, which provides fixed-line services and paid television.
Lifecell was previously fully owned by Turkcell. In April, a Kyiv court cleared the way for the acquisition by lifting the freeze on Lifecell shares owned by Russian billionaire Mikhail Fridman, who was under sanctions and held approximately 20% of the shares through LetterOne.
The transaction is valued at no less than $524.3 million, according to Turkcell. The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) will provide $435 million in loans.
Xavier Niel, Founder of NJJ Holding, commented:
“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. We welcome CEO Mykhaylo Shelemba to our team of esteemed CEOs leading NJJ’s telecom ventures around the globe. We are pleased to deepen our cooperation with Horizon Capital in their capacity as our minority partner in Ukraine, and to our long-term financial partnership with institutions EBRD and IFC.”
The upcoming integration will enable the platform to offer services that combine mobile, fixed-line, and paid television. The new platform is expected to attract around 10 million mobile users and more than 4 million individuals connected via fixed-line access.
The consortium, NJJ Holding, is owned by Xavier Niel, the founder of the European telecommunications group Iliad.
About NJJ Holding
NJJ Holding is the personal investment vehicle of Xavier Niel, a recognized entrepreneur and major long-term investor in the telecoms sector across the world. Xavier Niel is also the owner of Iliad – a telecommunications holding founded in 1991, which revolutionized the telecom market in France, ensuring that French consumers enjoy low broadband rates in the developed world with its “Freebox”. In 2012, he launched Free Mobile offering no-strings-attached SIM card services. Iliad now being a leading telecoms provider present in France, Italy and Poland. Overall, Xavier Niel has telecoms investments in more than 20 countries across the world, delivering mobile services to over a hundred million subscribers.
About Horizon Capital
Horizon Capital is the leading private equity firm in Emerging Europe with $1.6 billion in assets under management, from investors with a capital base of over $700 billion, raising over $800 million in growth capital in six years, including its latest fund, $350 million Horizon Capital Growth Fund IV, L.P. The firm’s investment strategy focuses on backing visionary entrepreneurs leading fast-growing, primarily tech and export-oriented businesses, in Ukraine and Moldova.
About Datagroup – Volia
Datagroup and Volia is the national fixed line leader across key customer segments – B2C, B2B, and wholesale. The Company’s network covers over 4 million Ukrainian households in more than 100 cities, with over 35,000 kilometers of fiber infrastructure making it one of the largest networks in the country. The Company also offers a broad portfolio of value-add services to its clients, including cloud and cybersecurity for B2B customers, and IoT and OTT solutions for retail customers. With more than 2,000 institutional clients, the group is also a key partner of the public sector, collaborating with state bodies and agencies in the fields of finance, defense, and communications.
