Turkcell makes $100 million move to expand in Eurasian market

Turkey's biggest cellphone operator Turkcell has acquired the remaining 44.96 shares of SCM Holdings in their joint subsidiary Euroasia Telecommunications for $100 million, which wholly owns Astelit that operates Ukraine's third largest cellphone operator life:).

According to the statement released by the Public Disclosure Platform (KAP) on late Friday, Turkcell will pay $100 million in 30 days following the signing of the agreement. Turkcell will also pay Astelit's debts through SCM.

Turkcell CEO Kaan Terzioğlu stated that Turkcell have taken the first major step in Ukraine as part of their growth strategy. "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" Terzioğlu said. "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."

The Ukrainian cellphone operator currently has 13.9 million subscribers with a network coverage rate of 98,6 percent of the population. The life:) brand also operates in Belarus.

Turkcell also operates subsidiaries in Azerbaijan, Kazakhstan, Georgia and Moldova through partnerships with its largest stakeholder TeliaSonera.