A consortium led by Xavier Niel’s NJJ Holding completed a deal to buy Ukraine’s Lifecell from Turkcell for $524 million, which it will now combine with fixed-line provider Datagroup-Volia.

The consortium, which also includes US private equity company Horizon Capital and Datagroup-Volia’s CEO Mykhaylo Shelemba, stated it will now move ahead with creating a converged telecom business with 10 million mobile subscribers and more than four million households covered by fixed-line.

The new entity is also in the process of securing $435 million through loans issued by International Finance Corporation and the European Bank for Reconstruction and Development, capital it intends to use to invest in “network, licenses, equipment and expansion of fixed and mobile infrastructure in Ukraine”.

“This historic transaction marks the first major investment by a new market entrant and major strategic investor since the full-fledged invasion,” read a statement, referring to the ongoing conflict between Ukraine and Russia.

Shelemba has been appointed CEO of the new business, while Datagroup-Volia’s executive chairman, Pierre Danon, will assume the role of non-executive chairman of the supervisory board.

Niel commented: “I am pleased to announce the completion of this landmark French investment in Ukraine’s telecom sector, which we believe will provide significant and tangible benefits to customers, the market, and to the country.”

“The closing of this landmark transaction will serve as a signal to others that Ukraine offers compelling opportunities, and that the time to invest is now.”