French billionaire Xavier Niel’s investment company NJJ Capital has closed the deal on acquiring Lifecell, one of Ukraine's largest mobile operators, and Datagroup-Volia, one of Ukraine's largest fixed telecom and pay-TV providers.
The merger represents one of the largest acquisitions in Ukraine's history since Indian Mittal Steel purchased the Kryvorizhstal complex for $4.8 billion in 2005, before merging with Arcelor a year later and becoming ArcelorMittal.
Niel said he was "pleased to announce the completion of this landmark French investment in Ukraine's telecom sector, which we believe will provide significant and tangible benefits to customers, the market, and to the country."
"The closing of this landmark transaction will serve as a signal to others that Ukraine offers compelling opportunities, and that the time to invest is now," Niel added.
NJJ received regulatory approval from Ukraine's antitrust regulator in March to acquire Datagroup-Volia.
According to Forbes Ukraine, the deal is estimated to be worth more than $650 million. Niel paid $525 million for Lifecell and as much as $120 million for Datagroup-Volia, Forbes Ukraine said.
The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) provided $435 million as part of a joint financing package.
Part of Lifecell was indirectly owned by sanctioned oligarch Mikhail Fridman until Ukraine froze his shares in the company in October 2023.
A Kyiv Court ruled on April 16 to lift the seizure of Fridman's Lifecell shares, paving the way for the deal to go through. Mykhailo Shelemba, the CEO of Datagroup-Volia, said that the contract on the sale of the company prohibits any payment to Fridman.
Shelemba will lead Lifecell-Datagroup-Volia Group as CEO.
"This opportunity is only made possible through the bravery of Ukraine’s courageous defenders who are protecting the country at this critical time, and the over 5,000 talented and dedicated management team and employees of Datagroup-Volia and Lifecell," Shelemba said.
The employees have "demonstrated the utmost resilience and commitment to continuing to deliver high-quality services to Ukrainians every day, despite challenging circumstances."
Liliane Bivings
