Turkcell has completed the acquisition of mobile services operator life:) / Photo from wikipedia.org
Turkish-based Turkcell has completed the acquisition of a 44.96% stake in Turkcell's Dutch-based subsidiary Euroasia Telecommunications Holding BV, which owns a largeUkrainian-based mobile services operator, Astelit (life:) brand), from Ukrainian businessman Rinat Akhmetov's SCM Holdings Limited.
"With this acquisition, our company aims to manage its operations in the growing Ukrainian telecommunication market more effectively, to have greater flexibility in making investment decisions and to increase Astelit's contribution to Turkcell Group through becoming a stronger market player in the long term," Turkcell said in a statement on July 10.
Late in June, Turkcell signed a share purchase agreement (SPA) with the SCM Group to buy a 44.96% stake in Euroasia Telecommunications Holding BV. SCM was expected to be paid $100 million for the shares. Conditions as per the SPA included the payment of $100 million as the consideration amount of the acquisition of SCM shares; payment of Astelit's debts obtained through and with guarantee of the SCM Group, termination of all guarantee agreements to which the SCM Group is party; and release of the SCM Group in this regard.
As of July 10, 2015, Turkcell had already held a 55.04% stake in Euroasia Telecommunications Holding BV.
Astelit is Ukraine's third largest mobile operator in terms of the clientele size. The number of its subscribers as of the end of the first quarter of 2015 was 13.7 million people, including 10.3 million active subscribers, who have made at least one call in the past three months.
Astelit entered the Ukrainian market in 2005 and has built the life:) mobile network covering the territory with over 98% of Ukraine's population.
In 2014, Astelit's net losses skyrocketed by more than 21 times, to UAH 5.593 billion from UAH 262 million in 2013.