Ukrtelecom has been acquired by the SCM Group for an undisclosed fee believed by local sources to be in the region of $1 billion (€764.4 million).
Following the deal, which still has to receive the approval of the competition authorities, the group will hold a stake of 92.79% in the company.
Ukrtelecom was privatised in 2011, with the Austrian-based investment fund EPIC paying UAH10.5751 billion (€978.4 million) for the 92.79% stake. SCM Group is backed by the entrepreneur Rinat Akhmetov and describes itself as the country’s largest diversified business group.
However, its interests in the telecom sector have until now been limited to the telco group Vegan Telecom and mobile operator Life.
The deal will see SCM Group hold a 92.79% stake in Ukrtelecom through 100% stakes in the companies Telecominvest Invest (Cyprus) and ESU.
Commenting on the acquisition, Peter Goldscheider, managing partner, EPIC, said: “EPIC has been driven by the challenge of a huge restructuring effort and commercial motives. As we found SCM to be a very logical buyer, we decided to sell our shareholding in Ukrtelecom.
“This transaction makes compelling sense for all parties. SCM has the necessary resources for further development of the company, including extensive regional, industrial and managerial expertise. We wish all stakeholders of Ukrtelecom and SCM the best possible future and look back with satisfaction to our involvement.”
Ilya Arkhipov, MD of SCM Advisors, added: “For SCM Group the purchase of Ukrtelecom is a promising investment project in the telecommunications industry.
“SCM is happy to have this opportunity to use the experience we have accumulated as well as the synergy with other telecom businesses of the Group to offer new products and services to the existing customers, to attract new clients and build a more advanced telecommunication infrastructure in Ukraine. We believe that the improved efficiency and client focus of Ukrtelecom will benefit the industry and end customers.”
