EBRD to lend $217.5 mln for merged Datagroup-Volia-Lifecell
MOSCOW. June 17 (Interfax) - The European Bank for Reconstruction and Development will provide financing of $217.5 million for the merged Datagroup-Volia-Lifecell following the acquisition of Ukraine-based assets of Turkcell by France's NJJ.
"The financing will enable capital expenditures related to upgrading and modernizing the mobile and fixed networks of the two entities, increasing network resilience, service quality, coverage, and energy efficiency," Ukrainian media reported, quoting the EBRD website.
The loan will support NJJ Holding and Horizon Capital to create a leading fixed-mobile operator in Ukraine by merging telecom operators Lifecell Group and Datagroup-Volia.
The recipient will be a Ukraine-registered entity indirectly owned by NJJ (85%), Horizon Capital (10%) and Mikhail Shelemba (5%).
"The Group does not anticipate a significant reduction in staff during the merger process, due to high competition for skilled labour in the sector. However, some staff optimization may occur," the statement says.
The company is expected to employ approximately 5,000 staff, according to the EBRD.
It was reported earlier that the EBRD and the World Bank Group's International Finance Corporation planned to provide $435 million finance to the merged Datagroup-Volia-Lifecell, so the EBRD will be providing half of that.
It has been reported that Turkcell plans to close the sale of its Ukrainian assets to French billionaire Xavier Niel's NJJ Group by the end of 2024.
Turkcell signed an agreement on December 29, 2023 to transfer 100% of shares, as well as all rights and debts of Lifecell LLC, Ukraine's third largest mobile provider, as well as contact center outsourcing company Global Bilgi LLC and tower leasing company Ukrtower LLC to NJJ Capital. The deal will be worth about $525 million, Turkcell said.
NJJ obtained regulatory approval in the spring to acquire Datagroup-Volia, which is 96.13%-owned by the Horizon Capital investment fund and 3.87% by Shelemba.