Officially: Azerbaijani company Bakcell acquires Vodafone Ukraine for $734 million

On November 25, MTS, a Russian telecom company, officially announced the sale of its 100% stake in Vodafone Ukraine to Bakcell.

The deal is structured as follows:

• MTS signed an agreement on the sale of telecom business with Telco Solutions and Investments, a company controlled by Bakcell, which is part of the international group of companies NEQSOL Holding.
• Under the terms of the agreement, MTS sells a 100% stake to Preludium BV (Netherlands), the sole shareholder of PrJSC VF Ukraine, through its subsidiary Allegretto Holding S.a.r.l. (Luxembourg).

The deal value is $734 million, including a deferred payment of approximately $84 million.

The stake will be transferred to the new owner soon.

The deal will not affect Vodafone Ukraine’s operations on the Ukrainian market.

Information on the acquiring company

Bakcell is a mobile operator and the leading mobile internet provider in Azerbaijan. The company was founded in 1994 as a joint venture between the state and the Israeli company GTIB. Bakcell network includes 7,500 base stations, which cover 93% of the country. The company serves more than 3 million customers.

It is part of the international NEQSOL Holding Group, founded in the early 1990s, which operates in the oil and gas, telecommunications, high-tech, and construction industries. The group of companies operates in such countries as Great Britain, USA, Turkey, Azerbaijan, Kazakhstan, UAE, Bangladesh, etc. In particular, it includes oil and gas companies Nobel Oil Services (UK) Limited and Nobel Oil E&P (UK) Limited, construction company Norm, etc.