Mobile operator «Kyivstar» has filed an application with the AMCU to acquire Uklon: Ukrainian LLC «Tech Uklon», «Uklon Corporation», «Uklon Ukraine» and Cyprus-based UKLON LTD. At the end of last year, the AMC received an application for permission from «Kyivstar» to acquire control (through «Uklon Corporation») over the assets of «Uklon Ukraine». The applications are currently under consideration by the AMCU.
It is worth noting that in September 2024, it became known that Veon, the parent company of «Kyivstar», was considering the purchase of Uklon. In December, Uklon co-founder Serhiy Smus said that the company had received several purchase offers, «but none of them were interesting to». Taking into account the military discount, he valued the company at 7-8x EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization).
According to Forbes Ukraine analysts, the current price of the company may be $40-80 million. Uklon finished the first three quarters of 2024 with revenues of UAH 1.2 billion, twice as much as in the same period of 2023.
It is worth noting that «Kyivstar» is actively expanding its business beyond the traditional telecommunications sector. In 2019, the company opened an R&D department that created new products such as the ADWISOR targeted SMS service. In August 2020, the operator acquired a stake in the Helsi medical service for UAH 555.74 million. In December 2022, «Kyivstar» launched a subsidiary IT company Kyivstar.Tech. Now it’s time for Uklon.
Why is «Kyivstar» buying Uklon?
It is worth noting that the operator «Kyivstar» is currently in the process of entering the Nasdaq stock exchange. The company is making the placement bypassing the IPO – through the SPAC mechanism (Special-Purpose Acquisition Company). Veon, the operator’s parent company, signed a letter of intent on January 13 with the American investment company Cohen Circle.
Kyivstar» is expected to reach a final agreement with Cohen Circle by the beginning of the second quarter of 2025. The company may go public in the late second or early third quarter of 2025.
«Kyivstar has a lot of money right now because of the ban on paying dividends abroad,” said Alexander Paraschiy, head of research at Concorde Capital. “Buying Uklon could help them declare themselves a digital company rather than a telecom company when they go public.
Experts also note that investors in the global market are paying more attention to the technology sector. With Uklon, «Kyivstar» can position itself as a super-app.
«Telecom companies on the stock exchange are worth 3xEBITDA, and if a telecom is presented as an ecosystem or super-app, the multiplier can be higher than»,” suggests an investment market source.
Source: forbes
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