Dubai-based VEON, which owns telecom operator Beeline Uzbekistan, agreed to acquire 100% of Rubicon Wireless, mobile operator trading under the Perfectum brand, the company announced on 19 October.
The deal is worth approximately $207 million inclusive of the assumed Perfectum’s outstanding financial debt of approximately $93 million.
The cash consideration will be funded from VEON’s existing cash resources. Relevant regulatory approvals for the acquisition have been obtained, and completion is expected by the end of October, the company said.
Perfectum’s assets include 115 MHz of spectrum across the 850 MHz and 3,800 MHz bands, together with modern network equipment and infrastructure assets, including a 5G standalone network deployed using Nokia equipment.
The transaction is expected to increase Beeline Uzbekistan’s spectrum holdings by approximately 50%, providing additional resources to enhance network coverage and capacity and support its roadmap for 5G and fixed wireless access services.
“The combination is also expected to improve the efficiency of future network investment and generate capital and operating expenditure synergies through integration with Beeline Uzbekistan’s existing network,” VEON said.
“Uzbekistan is one of VEON’s core growth markets, and this acquisition reflects our confidence in its digital future,” group chief executive officer of VEON Kaan Terzioglu said. “By combining complementary spectrum and network assets, we can deliver better connectivity and expand access to the digital services.”
“This acquisition gives us additional resources to meet our customers' growing connectivity needs,” said Yevgeniy Nastradin, CEO of Beeline Uzbekistan. “Perfectum's spectrum complements our existing holdings and will support our plans to strengthen coverage and capacity, introduce 5G services and expand wireless broadband for homes and businesses. Our priority is to integrate these assets effectively and translate them into tangible improvements for our customers.”
In August, entrepreneur Farhod Mamajanov, largest shareholder in InfinBank and investor at Perfectum, said he had reached agreement with VEON on attracting investments in a telecom project in Uzbekistan. In July, the Committee for Competition Development approved purchase by Mamajanov of 50% share in Perfectum.