A Kyiv court ruling on April 16th allowed the shares of sanctioned oligarch Mikhail Fridman in Lifecell to be unfrozen, potentially clearing the way for French billionaire Xavier Niel to acquire the mobile operator in a merger with telecoms company Datagroup-Volia. Niel’s investment company, NJJ, had already received regulatory approval from Ukraine’s antitrust regulator to acquire Datagroup-Volia, a leading fixed telecom and pay-TV provider in Ukraine. While regulatory approval for the acquisition of Lifecell is still pending, the court ruling marks a significant step towards the completion of the merger. The Lifecell mobile operator is currently 100%-owned by Turkcell, a publicly traded company in Turkey, with LetterOne, an investment management company founded by Fridman, holding a 19.8% stake in Turkcell. These shares were frozen by Ukraine in October 2023 following sanctions against Fridman for supporting Russia’s invasion.
Datagroup-Volia CEO Mykhailo Shelemba emphasized that the sale contract prohibits any payment to sanctioned individuals or companies, ensuring compliance with international and Ukrainian laws, particularly current sanctions imposed by the National Security and Defense Council. The acquisition by NJJ is expected to be one of the largest in the history of independent Ukraine, with a total value exceeding $1 billion, including the purchase price and additional investments. This deal is set to be among the biggest acquisitions in the country’s 33-year history, following the purchase of the Kryvorizhstal complex by Indian Mittal Steel in 2005 for $4.8 billion, which later merged with Arcelor to become ArcelorMittal. The final value of the acquisition and investment will be disclosed upon completion of the deal.
The potential acquisition of Lifecell by French billionaire Xavier Niel through his investment company NJJ represents a significant development in the telecom industry in Ukraine. If completed, the merger with Datagroup-Volia would consolidate the operations of two major players in the Ukrainian telecom market, offering a wide range of services to consumers and potentially driving further growth in the sector. By complying with international and Ukrainian laws, the parties involved in the deal aim to ensure transparency and legality in the transaction, adhering to the sanctions imposed by the National Security and Defense Council to prevent any improper payments to sanctioned entities.
The unfreezing of Mikhail Fridman’s shares in Lifecell by the Kyiv court ruling has removed a crucial obstacle in the acquisition process, allowing the merger between Datagroup-Volia and Lifecell to proceed as planned. The involvement of French billionaire Xavier Niel in the deal highlights the attractiveness of the Ukrainian telecom sector to international investors, signaling confidence in the country’s economic potential and market opportunities. With the total value of the acquisition expected to exceed $1 billion, the transaction is poised to be a landmark event in the history of independent Ukraine, representing a significant investment in the country’s telecommunications infrastructure and services.
The cooperation between NJJ, Datagroup-Volia, and Lifecell in navigating regulatory approvals and legal compliance demonstrates a commitment to conducting business ethically and in accordance with the laws of Ukraine and international standards. The strict adherence to sanctions and regulations regarding sanctioned individuals and entities underscores the importance of upholding ethical business practices and fostering transparency in corporate transactions. As one of the largest acquisitions in Ukraine’s history, the merger between Datagroup-Volia and Lifecell under the ownership of Xavier Niel’s NJJ is set to reshape the telecom landscape in the country and contribute to the development of a competitive and innovative communications sector.
In conclusion, the unfreezing of Mikhail Fridman’s shares in Lifecell represents a pivotal moment in the acquisition process led by French billionaire Xavier Niel’s investment company NJJ. The merger with Datagroup-Volia is expected to create a significant player in the Ukrainian telecom industry, offering a diverse range of services to consumers and driving growth in the sector. With a total value exceeding $1 billion, this acquisition stands as one of the largest in Ukraine’s history, reflecting confidence in the country’s economic prospects and market potential. By adhering to international and Ukrainian laws, the parties involved in the deal aim to ensure legality and transparency in the transaction, setting a precedent for ethical business conduct in the telecommunications sector.
