Categories: Tech

Telia Company agrees to divest its holding in Geocell

The FINANCIAL — Fintur Holdings B.V. (Fintur), jointly owned by Telia Company and Turkcell, has agreed to sell 100 percent of its holding in Geocell LLC, to the Georgian telecommunications company JSC Silknet, Georgia’s largest fixed network operator, for a transaction price of USD 153 million.

ADVERTISEMENT

“I’m happy to announce another step in our effort, to over time, leave Eurasia and focus on the Nordic and Baltic regions within the framework of our New Generation Telco strategy. I would also like to thank Geocell’s employees for their outstanding contributions and wish them all the best in the company’s next phase,” says Johan Dennelind, President and CEO of Telia Company.

At completion of the transaction, Fintur’s Turkish subsidiary Gürtel Telekomünikasyon Yatirim ve Dis Ticaret A.S. (Gürtel), will divest its 100 percent holding in Geocell LLC (Geocell) to JSC Silknet, Georgia’s largest fixed network operator. Gürtel is owned by Fintur (99.9 percent) and four minority shareholders.

The transaction price for Geocell is based on an enterprise value of USD 153 million for 100 percent of the company. The price corresponds to an EV/EBITDA multiple of 4.5x based on 2017. The transaction is expected to result in a capital loss of SEK 0.1 billion (in addition to the impairment of SEK 0.6 billion recognized in December 2017), subject to changes in FX and carrying values, and net proceeds of SEK 0.7 billion (after distribution of Turkcell’s share of the proceeds), according to Telia Company.

SUPPORT OUR NEWS, DONATE $1

Prior to signing the agreement, Telia Company completed strict compliance and purchaser due diligence using internal and external expertise, and is satisfied that all relevant checks and controls have been carried out with satisfactory results. Silknet is Georgia’s largest fixed network operator and has a market share of 41 percent of the Internet market in Georgia and 48 percent of the fixed telephone market. Silknet is owned by the three local investors George Ramishvili, Alex Topuria and David Borger.

The transaction is subject to regulatory approvals, and is expected to be completed in the second quarter of 2018.

 

The FINANCIAL

Recent Posts

Younger people twice as likely to access private healthcare, with most willing to pay using their own money or savings

Almost nine in ten (87%) UK adults believe people should have equivalent access to NHS…

13 hours ago

Why Bitcoin Got Interested With Georgia

Yearly this year, Sam Bankman-Fried, FTX founder met Georgia's Prime Minister Gharibashvili to discuss prospects…

13 hours ago

Killing In Kherson: A Self-Made Partisan Describes His Role In The Resistance To Russia’s Occupation

KHERSON, Ukraine -- For Vladyslav Nedostup, the eight-month occupation of his native city has receded…

15 hours ago

Casual Luxe & Upscale Fare Featured at Margaritaville Hollywood Beach Resort

Far underrated in comparison to its neighbors Miami and Fort Lauderdale, the city of Hollywood…

2 days ago

Getting ready for retirement

Getting ready for retirement can be both stressful and satisfying. As you get more and…

4 days ago

Macron says it’s up to Ukrainians to decide conditions for possible end of war and “sustainable peace”

French President Emmanuel Macron said he does not believe allies should push Ukrainians into a…

4 days ago