The Strategist

British Truphone to be sold for £1

06/06/2022 - 08:50

According to the Financial Times, the British telecommunications provider Truphone will be sold for £1. The company is owned by Russian oligarch Roman Abramovich and his colleagues.

In the event that Truphone "works well" and its value rises, the present owners will be able to recoup up to a third of the initial investment. Abramovich will not get this money if he is subject to sanctions.

Hakan Koç, a German businessman, and his partner Pyrros Koussios, a Greek businessman, will receive 90% and 10% of the shares, respectively. The entrepreneurs will have to invest more than £10 million in the company and incur "certain contractual liabilities" - including a $660,000 fine for misrepresenting the company's ownership structure.

According to the Financial Times, Abramovich and his business partners have spent more than £ 300 million on Truphone, which is expected to be worth £ 410 million in 2020. For the past 15 years, the business has been unprofitable. The decision to sell was made after Abramovich was placed on the European and British sanctions lists.