Turkcell has bought the 44.96% in Ukrainian mobile operator Astelit’s parent company that it did not already own. It paid investment firm SCM Group US$100m for the stake, held indirectly through Netherlands-based Euroasia Telecommunications Holding…
Turkcell has bought the 44.96% in Ukrainian mobile operator Astelit’s parent company that it did not already own.
It paid investment firm SCM Group US$100m for the stake, held indirectly through Netherlands-based Euroasia Telecommunications Holding BV. SCM is based in war-torn Donetsk and owned by Ukraine’s richest man, Rinat Akhmetov.
Astelit operates under the “life:)” brand and is the country’s third largest mobile operator. As part of the deal, Turkcell will pay off all the debts and guarantees associated with SCM. The Turkish company has guaranteed up to US$66m of credit for Astelit’s future financing needs.
The companies expect the deal to close in July.
Ilya Arkhipov, managing director of SCM Advisors, the SCM subsidiary that advised on the sale, said: “This is a mutually beneficial deal that will let Turkcell evaluate growth opportunities while SCM Group will focus on other projects.”
Turkcell CEO Kaan Terzioglu said the acquisition was part of his company’s strategy to invest in “organic and inorganic growth opportunities to strengthen our position in the countries where we operate”.
Terzioglu continued: “We believe that Ukraine will be a success story for Turkcell’s international operations and a pilot country as we transfer our experience to the region.”
SCM is still invested in Ukrainian telecoms. It holds a 92.79% in Ukrtelecom, the largest fixed-line operator in the country, and Vega telecommunications group.
