Roman Abramovich and his partners will sell the British telecom operator Truphone for just £1, according to the FT. In 2020, the company was valued at £410 million. The transfer of the asset to two European businessmen is connected with EU and UK sanctions imposed on the billionaire
Two European businessmen will buy British telecommunications group Truphone from Russian billionaire Roman Abramovich and his partners for just £1. informs financial times. Previously about these plans wrote newspaper The Times.
According to the FT, Truphone engaged consulting firm FRP Advisory to handle the deal after sanctions imposed on Abramovich by EU and UK authorities threatened the company’s future.
Abramovich owns 23% of the operator, most of the remaining shares are owned by his Evraz partners Alexander Frolov and Alexander Abramov, the newspaper writes. According to him, businessmen invested more than £300 million ($374.65 million) in the company, in 2020 the cost of Truphone was estimated at £410 million ($512 million).
Upon completion of the transaction, 90% of the company will be owned by Hakan Kotsch, a German entrepreneur and co-founder of used car dealer Auto1. His business partner Pirros Koussios will receive 10% of Truphone, writes the FT.
Auto1 previously received funding from the venture capital firm Target Global, which was managed by the son of Alexander Frolov, but Koch insists that he has nothing to do with Abramovich, Frolov or Abramov and never met with them, the newspaper notes.
The deal is expected to close this month. Under its terms, the current owners will invest more than £10 million ($12.5 million) in the business, as well as pay off the company’s debts, including a $660,000 fine from the US Federal Communications Commission. Going forward, if Truphone adds value through a listing or capital raising, Abramovich, Frolov and Abramov could recoup up to a third of their investment if the sanctions are lifted. According to The Times, the loss of businessmen from the deal will amount to more than £300 million ($374.65 million).
EU sanctions against Abramovich were introduced March 15th. Your decision Brussels substantiated Abramovich is “a Russian oligarch with long and close ties to Vladimir Putin,” which “has helped him maintain his considerable wealth,” and taxing the billionaire’s business is a “significant source of revenue” for the Russian budget. Great Britain introduced sanctions against the billionaire on March 10, and later disseminated restrictions on Evraz as well. At the end of May, Abramovich challenged EU sanctions in the European Court of General Jurisdiction.
