A consortium led by NJJ Capital, owned by French billionaire Xavier Niel, has finalized the acquisition of Lifecell, Ukraine's third-largest mobile operator, and fixed telecom provider Datagroup-Volia, in a deal worth at least $524 million.
"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," Niel said in a joint press release with consortium partner Horizon Capital, a Ukraine-focused private equity firm.
The deal, which will also see the merger of the two acquired companies, is the biggest in Ukraine in nearly 20 years, marking a milestone not only for war-time investing but for Ukraine in general.
Turkish mobile operator Turkcell, which owned Lifecell, said it received $524.3 million for the company. The price paid for Datagroup-Volia was not disclosed.
The acquiring consortium will receive $435 million in loans from the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation.
The new entity, with some 10 million mobile users and fixed connections for 4 million people, must face off against VEON’s Kyivstar and Vodafone, which dominate the market.
CMS acted as lead transaction counsel and KPMG as tax and financial advisor to the buyers, according to the press release. Avellum represented all parties as competition and anti-trust counsel, while DWF acted as legal counsel to NJJ. Lazard acted as financial advisor to Horizon Capital.
