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Deal between Silknet and Geocell Hits 153 million USD

Deal between Silknet and Geocell amounted to 153 million USD, reporters were said at today’s news conference, which was held by Giorgi Ramishvili, founder of Silk Road Group and Silknet supervisory board chairman, Lekso Topuria, member of supervisory boards of Silk Road Group and Silknet, Badri Japaridze, founder of TBC Bank and TBC Bank director general Vakhtang Butskhrikidze.

As part of the deal, a full-scale telecommunication company will be established, which will combine Silknet internet, cable television and landline telephone services with Geocell mobile services.

Merger of the telecommunication market leader companies will ensure a supply of wider spectrum of innovative products and services to Georgian consumers and expand access to international exclusive content, they noted.
Agreement has been achieved with Geocell stakeholders: “Telia Company” (STO:TELIA) and “Turkcell” (NYSE: TKC, IST: TCELL).

Value of the deal made up 153 million USD. The financing component will be ensured by a loan of Georgian and regional banks, organized by TBC Bank and Silknet’s own capital. A full-scale telecommunication company will be created as a result of this deal, the news conference participants noted.

“The deal enables to create an integrated telecommunication operator, which owns landline and mobile networks. Growing scales will enable the company to have expanded access to international finance markets and draw additional investments and continuously develop new technologies. 

Our subscribes will receive more benefits, because our objective is to supply higher quality products, Giorgi Ramishvii said.

After GNCC gives its consent, the purchasing procedures will end in the first half of 2018. Minster of Finance Mamuka Bakhtadze also attended the news conference.