Telecommunications company Silknet has acquired the company Geocell, the second-largest mobile telecommunications operator in Georgia, for $153 million. It is a record high purchase in the Georgian telecommunications sector.
Silknet released a statement about the acquisition today.
The acquisition will be financed through the combination of the company’s equity and a loan arranged by several Georgian banks, Silknet says.
“The transaction creates a major convergent telecom operator in the Republic of Georgia, combining the assets of the country’s largest fixed-line company, Silknet, with the mobile telecommunication activities of Geocell,” reads the statement.
“This transaction allows us to create an integrated telecommunications operator, combining fixed line and mobile technologies. The larger scale will provide the company with superior access to international capital markets, further ensuring continuous investment in new technologies. Our subscribers will greatly benefit from these endeavors, as we strive to provide Georgian consumers with even better products, services and content,” said George Ramishvili, the Chairman of Silknet and of its parent company, Silk Road Group.
“We are delighted to welcome to the Silknet team Geocell’s first-class employees and its corporate culture of excellence. This transaction furthers our long tradition of integrating Georgia with the wider world, and we expect that it will strengthen the development of Georgia’s digital infrastructure,” Ramishvili said.
According to information given to Tabula by the Georgian National Communications Commission, the companies have not officially informed them about the merge yet.
The acquisition is expected to be finally completed in the second quarter of 2018, according to the statement published by Silknet.