Turkcell takes 100% of Astelit for USD100m

29 Jun 2015

Turkcell has signed the share purchase agreement to acquire local partner SCM Holding’s 44.96% stake in Ukrainian cellco Astelit (life:)) to take the Turkish group’s stake to 100%. Turkcell’s press release confirms that Ukrainian conglomerate SCM’s shares in Astelit’s holding company Euroasia Telecommunications Holding BV will be bought for USD100 million, in accordance with an independent valuation study. Alongside the share purchase fee, Turkcell said that deal closure (expected within 30 calendar days) is dependent on ‘payment of Astelit’s debts obtained through and with guarantee of SCM Group, [and] termination of all guarantee agreements to which SCM Group is party.’

Turkcell CEO Kaan Terzioglu stated: ‘As Turkcell, we had declared that we would be evaluating both organic and inorganic growth opportunities to strengthen our position in the countries where we operate. In this context, we have taken the first major step in Ukraine. We believe that Ukraine will be a success story for Turkcell’s international operations and a pilot country as we transfer our experience to the region. Our belief is supported as life:), making the highest investment in 3G tender held in Ukraine, started providing 3G services to 2.3 million customers in a very short period of time following the launch on 4th June. With this acquisition, we pave the way towards boosting this momentum and increasing life:)’s contribution to Turkcell Group as a stronger player in the market.’

Ukraine, Lifecell (formerly Astelit), Turkcell