The price of the lifecell purchase deal is quoted: the buyer considers it cheap compared to the profit

The price of the lifecell purchase deal is quoted: the buyer considers it cheap compared to the profit

French billionaire Xavier Nieuw says his investment company NJJ Capital is ready to pay $500 million for mobile operator lifecell (a unit of Turkcell Iletisim Hizmetleri AS in Ukraine), and calls this price cheap compared to profits.

About this writes Bloomberg.

“Nielyu calls the price of assets “cheap” compared to the profits of the Ukrainian operator lifecell,” the report says.

The agency reminds that as a result of the agreement, the French company will gain control over the mobile operator lifecell, the international outsourcing contact center “Global Bilgi” and the operator of cellular towers LLC “Ukrtower”.

“The deal, which was initially announced in December without a price tag, will give NJJ Capital control of Lifecell LLC, LLC Global Bilgi and LLC Ukrtower. Njelu said the deal is pending regulatory review, including a green light from Ukraine’s antimonopoly agency.” , – reports Bloomberg.

Describing the interest in this deal, the agency notes that in 2020, Njelu already acquired the Polish mobile operator Play. That deal was made through French telecommunications group Iliad for €3.5 billion, expanding the billionaire’s company.

“The large amount of roaming traffic between the countries means that the deal ‘makes sense,'” Nielleu said at a meeting with the Paris Press Association for business journalists on January 29.

We remind you:

As wrote The Financial Times in 2020, Xavier Nyel’s purchase of Polish mobile operator Play came amid depressed valuations in the sector. Low prices gave the buyer an opportunity to take assets that were considered undervalued.

On December 29, 2023, the Turkish company Turkcell signed an agreement on the transfer of 100% of shares, as well as all rights and debts of Lifecell LLC (TM lifecell) – the third largest Ukrainian mobile operator, as well as a contact center outsourcing company LLC. Global Bilgi” and the provider of tower rental services LLC “Ukrtower” to the French investment company NJJ Capital.

The board of directors decided to sign the contract on December 20, but on May 9 it decided not to disclose information about the possible agreement.

Turkcell clarified that the nominal price of shares of “Lifecell” – 12 billion 711.849 million UAH, “Global Bilgi” – 47.226 million UAH and “Ukrtower” – 1 billion 964.04 million UAH.

In mid-January, the Antimonopoly Committee of Ukraine returned to the French NJJ Capital, an application for the purchase of lifecell due to non-compliance of the documents with the requirements.

However, at the end of January, the Antimonopoly Committee received repeated applications from the company DVL Telecom (Paris, France), which is part of the NJJ group, regarding the acquisition of a controlling stake in LLC “Lifecell”, in the international outsourcing contact center “Global Bilgi” and in the operator of cell towers of Ukrtower LLC.

NJJ Capital belongs to French billionaire Xavier Niel, the founder of the French telecommunications group Iliad (the parent company of one of the country’s largest Internet providers – Free), whose fortune Bloomberg estimates at $6.08 billion.

Niel also has assets in the media, including a significant stake in Le Monde newspaper, engages in venture financing and founded the 42 technical school, on the basis of which the UNIT Factory in Kyiv’s UNIT City was launched.

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