The Antimonopoly Committee (AMCU) allowed mobile operator “Vodafone Ukraine” to acquire a stake in the share capital of LLC “Freinet”, the document was issued on Thursday, according to the AMCU website.
“On May 25, 2023, the Antimonopoly Committee made a decision allowing VF Ukraine PJSC to acquire a stake in the authorized capital of Frinet LLC, which provides the buyer with control over the said facility,” the AMCU said in a statement.
It is noted that the concentration occurs in the provision of fixed Internet access services in Ukraine. At the same time, it is specified that members of the concentration provide fixed Internet access services in Ukraine both to individuals and legal entities within the boundaries of many settlements in Ukraine.
AMCU noted that the share of the buyer’s group on the respective regional markets is insignificant. Thus, as a result of concentration the aggregate share of participants in the regional markets of fixed Internet access services to individuals and legal entities within the respective geographical boundaries will not exceed 15-21%. That is, the claimed concentration will not lead to monopolization or significant limitation of competition in the commodity markets of Ukraine, said the AMCU, justifying the issuance of the permit.
Freinet” company provides high-speed Internet services in Kiev, where the customer base of provider has more than 160 thousand active subscribers. In addition to the capital region the company operates in the Kiev region and nine other regions, including Dnipropetrovsk, Zhitomir, Ivano-Frankovsk and Lvov regions.
The Vodafone Ukraine group includes the National Telecom Operator Vega, which offers integrated solutions in fixed telephony, broadband Internet access and data transmission. The company is present in 22 regions of Ukraine. It provides Internet services by GPON technology in Kiev, Odessa, Dnepr, Lviv, Kharkiv. Operational management of Vega telecommunications group is implemented by PJSC “Farlep-Invest”.
As reported, “Vodafone Ukraine” in 2022 reduced net income by 2% – to 19.8 billion UAH, with a net profit of 1.1 billion UAH.
At the end of 2019, NEQSOL Holding through OOO Telco Solutions and Investments, controlled by Bakcell closed the deal to purchase its telecommunications business in Ukraine from MTS PJSC with financing from J.P. Morgan and RBI. The price amounted to $734 million.
NEQSOL Holding has more than 25 years of experience in various industries and countries. Its operations cover oil and gas, telecommunications, construction and other high-tech areas in the UK, USA, Turkey, Azerbaijan, Kazakhstan, UAE and the Netherlands. The Group entered the telecommunications industry in the early 2000s. Its member companies provide mobile communication services, international transit and wholesale Internet sales, leased line services, data center services, etc.
Businessman Nasib Hasanov is the official founder and 100% owner of NEQSOL Holding, including Nobel Oil Services (UK) Limited, Nobel Oil E&P (UK) Limited (trade name Nobel Upstream), Bakcell LLC and Norm OJSC.
