EBRD and IFC plan to provide $435 million in financing for Datagroup-Volia, Lifecell after deal close.
The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) are in the final stages of preparing a financing project to support the largest investment deal in Ukraine in 10 years, initiated by Xavier Niel’s NJJ Holding (NJJ), Horizon Capital and Datagroup-Volia. The deal, in particular, envisages the merger of one of Ukraine’s largest national fixed-line providers, Datagroup-Volia, and the fast-growing mobile operator, Lifecell*. The potential joint contribution of the EBRD and IFC of up to $435 million is expected to support fixed-mobile convergence (FMC), increase investment in the companies’ combined network, and purchase licenses and equipment needed to expand the fixed and mobile platform infrastructure in Ukraine.
The entry of a global Western strategic operator into the Ukrainian telecom market and the financing of the project by international structures will generally accelerate Ukraine's future growth, increase its resilience in difficult military conditions, and help overcome the digital divide in the country.
The significant support from the EBRD and IFC should become a powerful signal for the active attraction of large international investments to Ukraine, which the country desperately needs after the full-scale invasion.
"I thank the EBRD and IFC for supporting Ukraine and Ukrainian business during this difficult military period. And once again, I thank NJJ Holding and personally Xavier Niel for their faith in Ukrainians and the potential of our development," commented on this decision by Mykhailo Shelemba, CEO of Datagroup and Volia.
Recall that earlier this year, French entrepreneur Xavier Niel, founder of Iliad, a leading European telecommunications group, and NJJ Holding, received regulatory approval to acquire Datagroup-Volia. The company is currently approximately 96% owned by Horizon Capital, a private equity firm led by Olena Kosharna, and approximately 4% by Mykhailo Shelemba, the company's CEO. After the transaction closes, Horizon Capital and Mykhailo Shelemba will retain a minority stake in the combined company and will become NJJ's local partner.
*The combined Datagroup, Volia, Lifecell group will be able to provide mobile services to nearly 10 million users, as well as fixed-line services covering nearly 4 million households nationwide.
