Silknet Officially Becomes 100% Shareholder of Mobile Operator Geocell

Georgian telecommunication company Silknet has officially become 100% shareholder of mobile operator Geocell.

The Georgian National Communications Commission approved the acquire 100% share of Geocell by Silknet on March 13.

After the merger of the two technological giants, it is believed that the largest full-spectrum telecommunication company will be formed, providing a wider choice of new products and services to Georgian consumers. 

The deal between the Silknet and Geocell companies amounted to $153 million, made after reaching an agreement with Geocell’s shareholders, Telia Company (STO:TELIA) and Turkcell (NYSE: TKC, IST: TCELL). 

The $153 million acquisition was provided through a combination of loans– a syndicated loan arranged by TBC Bank with 9 other Georgian and regional banks – and equity. 

In the course of the process, international companies Houlihan Lokey and Erneholm Haskel were Silknet’s financial advisers, while company Dentons was a legal advisor.

KPMG and the leading global telecommunications operator Orange's subsidiary consulting company Sofrecom were also involved to contribute.

Silknet has been a member of the Orange Alliance since 2014, providing the company with advanced technologies and best practices. The membership of Orange Alliance will allow Silknet to introduce advanced international management systems and offer new products and services to consumers.

Silk Road Group companies employ about 5,000 people. During the last ten years, Silk Road Group with its partners has invested around $500 million in the Georgian economy.

By Thea Morrison