Ukrainian regulator greenlights NJJ co to consolidate Lifecell assets

MOSCOW. July 26 (Interfax) - Ukraine's Antimonopoly Committee on Thursday gave the green light for DVL Telecom, a division of French billionaire Xavier Niel's NJJ Group, to concentrate the assets of Lifecell, the country's third largest mobile provider.

The regulator gave DVL Telecom permission to acquire control of Lifecell LLC, as well as contact center outsourcing company Global Bilgi LLC and tower leasing company Ukrtower LLC, Ukrainian media reported, citing a statement from the committee.

The regulator also granted permission for two years for concerted actions stipulated by the purchase-sale agreement for stakes in Lifecell Group companies between Lifecell Ventures B. V., Global Bilgi Pazarlama Danismanlik ve Cagri Servisi Hizmetleri A.S., Kule Hizmet ve Isletmecilik A.S. and NJJ Capital that was signed on December 29, 2023.

It was reported earlier that the European Bank for Reconstruction and Development has approved a loan of $217.5 million, half of the $435 million being provided with the International Finance Corporation to finance the merged Lifecell and fixed-line operator Datagroup-Volia after NJJ completes their acquisition from Turkcell.

The new company will be 85% owned by NJJ, an investment holding company operating mainly in the telecommunications sector, 10% by Horizon Capital, a private equity fund focused on investments in Emerging Europe, and 5% by Mikhail Shelemba, CEO and minority shareholder of Datagroup-Volia.

The merged company is expected to have about 5,000 employees working at the office and in the field.

The Antimonopoly Committee granted DVL Telecom permission to acquire a controlling stake in Datagroup Holding Limited (Datagroup-Volia) on March 7, 2024. However, the regulator said it found grounds to prohibit DVL Telecom's acquisition of control of Lifecell Group and in April asked for additional information.