A consortium led by French billionaire Xavier Niel finalizes a significant $524 million deal, merging Lifecell and Datagroup-Volia in Ukraine, aiming to bolster competition within the country's telecommunications sector.
Kyiv, Ukraine – A transformative deal is set to reshape Ukraine's telecom sector as a consortium of investors, spearheaded by French billionaire Xavier Niel, has successfully concluded a $524 million acquisition and merger involving Lifecell and Datagroup-Volia. The announcement, made public on Monday, signifies a major influx of investment into the country's infrastructure.
Lifecell, currently the third-largest mobile operator in Ukraine, will integrate with Datagroup-Volia, a prominent fixed-telecom and pay-TV service provider. This strategic merger is anticipated to create a more competitive environment within Ukraine's telecommunications market, offering consumers a wider range of services and potentially driving innovation.
The acquisition of Lifecell was facilitated after a Kyiv court ruling lifted the seizure of shares previously held by sanctioned Russian billionaire Mikhail Fridman. This legal development paved the way for the deal to proceed, underscoring the evolving geopolitical landscape influencing business transactions in the region.
The financial backing for this ambitious project includes significant contributions from the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), which are collectively providing $435 million in loans. This substantial financial commitment reflects confidence in the growth potential of the Ukrainian telecom market and the prospects of the newly formed entity.
Once fully integrated, the merged platform is projected to serve approximately 10 million mobile subscribers and connect over 4 million users through a fixed-access network. This extensive reach will position the new entity as a major player in Ukraine's digital infrastructure, with the potential to drive economic growth and enhance connectivity for both individuals and businesses.
Analysts suggest that the merger could stimulate further investment and innovation in Ukraine's telecom sector, creating a more dynamic and competitive market landscape. The deal marks a significant milestone in the country's efforts to modernize its infrastructure and attract foreign investment, particularly in strategically important sectors.
(With inputs from agencies.)
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