Xavier Niel, through his investment firm, NJJ Holding, has received regulatory approval to acquire a fixed-line company in Ukraine. His vision is to merge this company with the mobile operator, lifecell, aiming to establish a prominent telecommunications entity in the country.
This strategic move signals Niel's intention to bolster his presence in the Ukrainian telecom market and create a unified telecom service offering encompassing both fixed-line and mobile services.
Reaching Market Goals
In a statement, the founder of the iliad Group and NJJ Holding described the approval to acquire fixed and pay-TV provider, Datagroup-Volia, as a significant step towards reaching their market goals.
The investment firm is currently awaiting approval to acquire mobile operator, lifecell, from Turkcell. Once both transactions are completed, the company intends to merge the businesses to form a new entity with nearly 10 million mobile subscribers and 4 million fixed network homes.
The plans entail offering triple-play converged services and making substantial investments in expanding both mobile and fixed networks to accelerate future growth.
Investing in Ukraine’s Notable Tech Sector
Niel stated that his company's goal is to provide "Ukrainians with safe, secure, and reliable telecom services." He further mentioned that Ukraine has an impressive tech sector fueled by AI innovation, a high level of digitalization, and technological affinity. “We are confident that our landmark transaction will serve as a signal to others that the time to invest in Ukraine is now; to support the rebuilding of the country and realize its potential."
He also conveyed assurance that the sector's proficiency, gleaned from experiences in various telecommunications markets, would be advantageous for stakeholders and the broader public.
NJJ Holding is acquiring Datagroup-Volia from a fund managed by US private equity firm, Horizon Capital, as well as from Mykhaylo Shelemba, the CEO of the fixed player, who holds nearly 4 percent of the stake. Following the acquisition, both current shareholders are expected to hold equity in the unified mobile-fixed entity.
