Turkcell selling Ukrainian units to NJJ Capital

Turkcell selling Ukrainian units to NJJ Capital

Turkcell has signed an agreement to sell its units in Ukraine to the French investment firm NJJ Capital.

The deal covers the mobile operator Lifecell as well as digital services provider Global Bilgi and tower firm Ukrtower. As reported by Bloomberg, the shares sold for Lifecell have a nominal value of US$333 million, making it significantly more valuable than the other two units.

Ukrinform reported that neither the reason for the sale nor the terms of it have been specified. A statement from Turkcell noted that there is “uncertainty involved in the transaction” with the conditions yet to be determined.

The sale is perhaps the most significant decision taken under the months-long tenure of Turkcell’s new CEO Ali Taha Koc. A former advisor and IT Minister under the Erdogan government, Koc took over from Bulent Aksu who lasted just 11 days in the top spot.

Shares in Turkcell have risen 48% this fiscal year, with net profit exceeding forecasts for the third quarter. While the company is withdrawing from Ukraine, VEON – led by former Turkcell CEO Kaan Terzioglu – has confirmed plans to invest US$600 million into Kyivstar to help rebuild and sustain its network across the next three years.

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