Silknet is planning to purchase Geocell.
- As a result of the largest agreement in the history of Georgia, a full spectrum telecommunications company is being established, which connects Silknet Internet, cable television and fixed telephone service with Geocell mobile services.
- The integration of telecommunication market leader companies provides a wider choice of innovative products and services for Georgian consumers and increased access to international exclusive content.
Today “Silknet” announced the purchase of “Geocell”. The agreement reached with Geocell’s shareholders: “Telia Company” (STO: TELIA) and “Turkcell” (NYSE: TKC, IST: TCELL).
The value of the contract amounted to 153 million USD. It will be financed by Silknet capital its own and TBC Bank that will organize regional bank loans. The country’s largest fixed operator “Silknet” and mobile operator “Geocell” will form a full-scale telecommunications company in Georgia.
“Silknet” is a member of the Orange Alliance, which promotes the development of international telecommunication companies and their work efficiency, enables them to use the experience and technologies of the world class leading operator.
“Silknet” and “Geocell” will enable Georgian customers to get access to the Internet, cable television, mobile and fixed telephone services, including mobile access to “Silknet” exclusive content.
“The contract allows us to create an integrated telecommunication operator that owns fixed and mobile networks. The increased scale will provide better access to the company with international financial markets, which allows for the continuous development of additional investments and new technologies.
Our subscribers will benefit from this, because our main goal is to provide Georgian customers with even higher quality products, services and content, “said Giorgi Ramishvili, chairman of the Silknet and its founding company Silk Road Group Supervisory Board. “We welcome ” Silknet “and” Geocell “,high professional and distinguished cultural corporate teams. This transaction continues the long-term tradition of our group, which implies Georgia’s integration with the rest of the world and we are confident that it will contribute significantly to the development of digital infrastructure in Georgia. “
After the consent of the Georgian National Communications Commission, the acquisition is planned to complete in the first half of 2018.
Companies ”Houlihan Lokey” and ”Erneholm Haskel” were Silknet’s financial advisors, as for legal advisory, company ”Dentons” carried out the work.