NJJ’s investment in Datagroup-Vola-Lifecell, owned by French billionaire Xavier Nel, will amount to $1.5 billion, which includes the purchase of 100% of the companies’ assets and investment commitments for five years.
“For Ukraine, in fact, the issue of $1.5 billion in investments is being resolved, which includes the amount of the deal and capital investments to be made in the next five years,” Datagroup-Vola-Lifecell CEO Mykhailo Shelemba told Interfax-Ukraine.
He also noted that Datagroup-Vola-Lifecell, which will be established after the deal is completed, plans to participate in auctions for the allocation of 2355-2395 MHz, 1935-1950/2125-2140 MHz and 2575-2610 MHz mobile radio frequencies, which the National Commission for the State Regulation of Electronic Communications, Radio Frequency Spectrum and Postal Services may hold in August.
“Frequencies are the main asset for any mobile operator. Lifecell currently has enough frequencies to provide quality services, but we want to grow and will need more frequencies,” Shelemba said.
He emphasized that the entry of such an investor as NJJ into the tender “will increase competition for frequencies by an order of magnitude, so the state will be able to raise more money.”
“And we are talking about tens of millions of dollars…” Shelemba said.
Earlier it was reported that the investment company NJJ, owned by French billionaire Xavier Nel, will merge their assets into a single company that will offer customers a triple package of services after the acquisition of Datagroup-Volia fixed-line telecommunications operator and lifecell mobile operator. Mr. Shelemba will head the combined Datagroup-Volia-Lifecell platform. Pierre Danon, the current chairman of the supervisory board of Datagroup-Volia, will also continue to serve as chairman of the supervisory board of the combined entity.
The transaction is subject to final regulatory approvals and other closing conditions. As reported earlier, the Antimonopoly Committee of Ukraine (AMCU) has found grounds to ban the acquisition of control over Lifecell Group by DVL Telecom, a member of the NJJ group of French billionaire Xavier Niel. At a meeting on March 7, the AMCU allowed DVL Telecom to acquire control of Datagroup Holding Limited (Datagroup-Volya).
Turkcell CFO Kamil Kalyon confirmed during the investor Q&A session at the company’s 2023 financial results presentation that the transaction with NJJ was set at $525 million at the time of closing, but the final amount would be subject to adjustment.
The Antimonopoly Committee of Ukraine (AMCU) has identified grounds for banning the acquisition of control over lifecell group by French billionaire Xavier Niel’s DVL Telecom, a member of NJJ group.
In particular, the antitrust agency believes that it is necessary to check the relationship of control of lifecell itself and the parent company Turkcell with the person to whom the decision of the national security and defense Council of Ukraine applied personal special economic and other restrictive measures (sanctions).
“When considering applications for the acquisition of control over the group “Lifecell” by the company “DVL Telecom” arose the need to verify the relationship of control of the participants of the concentration, in particular the group “Lifecell” and the group “Turkcell” with the person to whom the personal special economic and other restrictive measures (sanctions) applied by the decision of the National Security and Defense Council of Ukraine,” – said the press service of the AMCU on Monday.
The report states that, having considered the applications on the acquisition of control by DVL Telecom over Lifecell LLC, Global Bilgi LLC and Ukrtauer LLC (lifecell group), the AMCU has identified grounds for banning the said concentrations.
“Given that the concentrations in the form of acquisition by DVL Telecom of control over Lifecell LLC, Ukrtauer LLC and Global Bilgi LLC constitute a single transaction and will take place under a single sale and purchase agreement, a separate authorization for DVL Telecom’s acquisition of control over Global Bilgi LLC cannot be granted by the Committee either,” the AMCU notes.
Considering the above, on March 7, 2024, the Committee again started consideration of the concentration cases in the form of acquisition by DVL Telecom of control over Lifesell, Global Bilgi and Ukrtauer LLC. At the same time began consideration of the case on concerted actions, which are directly related to the implementation of these concentrations, specified in the press service.
Earlier it was reported that at the meeting on March 7 AMCU allowed DVL Telecom to acquire control over Datagroup Holding Limited (“Datagroup-Volya”). In addition, the antimonopoly agency allowed concerted actions between NJJ UPAM (Paris, France), Lorimer II Ventures Limited (Nicosia, Cyprus), DVL Telecom (Paris, France) and a natural person – citizen of Ukraine in the form of implementation of provisions on refraining from competition, provided by Section 19 of the shareholders’ agreement, which will be concluded between these entities for a period of five years.
On December 29, 2023, Turkcell, a Turkish company, signed an agreement to transfer 100% of the shares, as well as all rights and debts of Lifecell LLC (TM lifecell), Ukraine’s third largest mobile operator, including contact center outsourcing company Global Bilgi LLC and tower rental service provider Ukrtauer LLC, to the French investment company NJJ Capital.
The decision to sign the agreement was made by the Board of Directors on December 20, but as early as May 9 it decided not to disclose information about the possible deal. Turkcell specified that the nominal price of Lifesell shares is UAH 12 billion 711.849 million, Global Bilgi – UAH 47.226 million and Ukrtauer – UAH 1 billion 964.04 million.
Authorized representatives of NJJ Capital (Paris, France) and Global Bilgi LLC (Kyiv, Ukraine) applied to the Antimonopoly Committee (AMCU) for authorization of NJJ Capital to indirectly acquire a part in the authorized capital of Global Bilgi, which provides for exceeding 50% of votes in the supreme governing body of the company, as well as parts providing for exceeding 50% of votes in the supreme governing bodies of Lifesell and Ukrtauer on December 29, 2023. The applications were returned to them as they did not meet the requirements set by the committee.
On January 23, 2024, AMCU received a second application to acquire the stake that provides control in Lifsell, Global Bilgi and Ukrtauer LLC from DVL Telecom, a member of the NJJ group.
According to market participants, a problem for the completion of the deal may also be the partial seizure of stakes in the companies being sold on charges against the under-sanctioned Mikhail Fridman, who indirectly controls a minority stake in Turkcell.
