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The move is the largest direct foreign investment in Ukraine since the war began
This week, the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) have confirmed they will jointly invest $435 million into Ukraine’s newest converged telco.
Back in April, a consortium led by telecoms mogul Xavier Niel’s NJJ Holding announced plans to purchase both Ukrainian TV and fixed broadband provider Datagroup-Volia and mobile operator Lifecell, with the intention of merging the two operators.
The move would create the second largest converged operator in the country, with 10 million mobile customers and a fixed broadband network covering over 4 million homes.
The promise of funding from the EBRD and the IFC was crucial in the planning of the acquisitions, with the details of this funding still being finalised when the merger was concluded last month.
“That is the game changer,” said Holger Muent, EBRD’s director of telecommunications, media and technology, told Reuters. “It will create the second-largest operator of that kind in the country and that leads to higher speed, better coverage, lower energy consumption for the network, and more redundancy in the network as well.”
The deal is seen as a major boon for the Ukrainian economy, ensuring the robust digital infrastructure is in place to support the nation’ economic recovery.
“By strengthening digital connectivity and network resilience, we are delivering a vital service to millions of Ukrainians while reaffirming our commitment to the country,” said Makhtar Diop, IFC’s managing director. “It sends a strong message to global investors about the resilience and significant potential of Ukraine’s economy.”
The newly merged telco, Lifecell-Datagroup-Volia Group, is set to be led by Mykhaylo Shelemba, the current CEO of Datagroup-Volia.
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