The Antimonopoly Committee of Ukraine has concluded the review of cases regarding the approval for DVL Telecom to acquire LLC “Lifecell,” LLC “Global Bilgi,” and LLC “UkrTower.” All three entities form the Lifecell Group. The Lifecell Group, which includes the lifecell operator, provides customers with mobile communication services, mobile internet, fixed-line telephone services, mass text messaging, call centers, and tower space rentals.
DVL Telecom is a subsidiary of the French investment company NJJ Capital, owned by billionaire Xavier Niel. DVL stands for Datagroup, Volia, and lifecell, which will merge into a single company following the completion of the deal.
In March of this year, the committee allowed DVL Telecom to gain control over Datagroup Holding Limited. The consolidation of DVL Telecom’s control over Datagroup Holding Limited and the Lifecell Group is considered a single transaction. This merger aims to provide consumers with comprehensive telecommunications services, including mobile communications and internet, fixed internet access, and bundled packages that combine these services with television.
These cases were initiated by the Committee considering the seizure of corporate rights of LLC “Lifecell” and LLC “Ukrtower.” The seizure was imposed due to the fact that the indirect minority shareholder of “Turkcell Iletisim Hizmetleri A.Ş.” (the parent company of Lifecell) is Mikhail Fridman, who is under sanctions.
In April, the court lifted the seizure on the shares of LLC “Lifecell” and LLC “Ukrtower,” and the committee reviewed the relationships between the Lifecell Group, the Turkcell Group, and sanctioned individuals. It was found that the funds to be received by Turkcell Iletisim Hizmetleri A.Ş. from the sale of the Lifecell Group would not be paid to Mikhail Fridman. After reviewing the case, the committee granted permission for the proposed concentrations.
According to the Ministry of Finance, the potential acquisition of lifecell and “Datagroup-Volia” will be one of the largest M&A deals in Ukraine in the past decade. French billionaire Xavier Niel is prepared to pay $525 million for the third-largest operator by number of subscribers.
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