A consortium led by Xavier Niel's investment firm, NJJ Holding (NJJ), has completed the double acquisition of Lifecell and Datagroup-Volia in Ukraine from Turkish carrier Turkcell for $524.3 million.
The deal, which was first announced in January, is part of Niel's aims to establish a "telecoms champion" in the country, as he combines Lifecell and Datagroup-Volia into one entity.
The consortium also includes US private equity firm Horizon Capital.
Datagroup-Volia is one of Ukraine's biggest fixed telecom and pay TV providers, while Lifecell is the country's third biggest mobile operator. Combined, the two companies have around 14 million customers.
In a statement, Niel, the founder of French telecoms company Iliad Group, acknowledged the potential of the Ukrainian telecoms market, despite the country's ongoing war with Russia.
"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 said.
In the announcement, it was confirmed that the new entity is looking to secure a $435m loan via a joint financing package provided by the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC).
The loan will be used to invest in the company's network, licenses, equipment, and expansion of fixed and mobile infrastructure in Ukraine.
Mikhail Shelemba, CEO of Datagroup-Volia, added: “Closing this deal now paves the way for the merger of Datagroup-Volia and Lifecell to create a new champion in Ukraine’s telecom sector, combining two stellar assets with vast synergy potential. The expansion of the triple-play offering is expected to result in clear, tangible benefits for consumers in terms of convenience, cost, and quality of service."
French tycoon Niel has built a telco empire across Europe. The Iliad founder also holds a stake in UK operator Vodafone, plus Luxembourg's Millicom International Cellular (MIC), and in November he took a six percent stake in Belgian telco Proximus.
