Acquisition of the Shares of SCM Holdings Limited in Euroasia that Owns 100% of Astelit in Ukraine
Based on the decision of our Board of Directors, the Share Purchase Agreement (“SPA”) has been signed to acquire SCM Holdings Limited’s (“SCM”) 44.96% stake in our subsidiary Euroasia Telecommunications Holding BV (“Euroasia”) based in Netherlands, in which we currently hold 55.04% stake. Euroasia owns 100% of LLC Astelit (“Astelit”) operating under the brand “life:)” in the Ukrainian mobile market.
In accordance with the independent valuation study, SCM’s 44.96% stake will be acquired for US$ 100 million on the conditions summarized below. The total consideration amount will be paid on the closing date. Such conditions as per the SPA are as follows:
- Payment of US$ 100,000,000 as the consideration amount of the acquisition of SCM Shares;
- Payment of Astelit’s debts obtained through and with guarantee of SCM Group, termination of all guarantee agreements to which SCM Group is party; and release of SCM Group in this regard.
Turkcell CEO Kaan Terzioğlu 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 June 4th. 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.”
