19
Thu, Oct
53 New Articles

Turcan Cazac, Schoenherr, and Vernon | David Advise on Sale of Sun Communications to Orange Moldova

Turcan Cazac, Schoenherr, and Vernon | David Advise on Sale of Sun Communications to Orange Moldova

Moldova
Typography

Turcan Cazac has assisted the shareholders of the Moldovan cable and pay TV operator Sun Communications in their sale of 100% of shares in the company to Orange Moldova SA, a unit of France Telecom's Internet and mobile arm Orange. Baker Botts advised the sellers as English counsel, while Orange was advised by Trevors Smith as English counsel and Schoenherr and Vernon | David as local counsel.

According to Turcan Cazac, "the deal has described by business media as a mega transaction in the Moldovan telecommunications sector."

The transaction involved the sale of shares by Lekert Management Ltd and Neocom Ltd, the investment vehicles controlled by Sun Communications founder Alexandru Sirbu (65%), the EBRD (28%), and the senior management of the company, including John Maxemchuk, the CEO (5%) after the parties signed a framework agreement in June 2016.

The deal was completed on October 18, 2016 after the Moldovan Competition Council authorized the takeover by Orange Moldova, finding that the merger does not raise significant obstacles to the competition environment on the market of the Republic of Moldova or a significant part thereof and in particular that a dominance will not be created or strengthened thereby.

According to Orange Moldova, the takeover will allow it to enter the fixed and Pay TV services market and offer new and innovative services, and in particular convergent offers including fixed, mobile, and pay TV services. 

Orange Moldova is the largest mobile operator in Moldova with over 2.6 million customers and a 57% market share in the national telecommunication sector, according to Moldovan telecom regulator ANRCETI. Sun Communications is the leading Pay TV provider in Moldova by customer base. It offers digital and cable TV services under the brand SunTV to customers in Chisinau, Balti, and Cahul.

Turcan Cazac also assisted the EBRD back in 2007 when it made its equity and debt investments in Sun Communications.

The Turcan Cazac team was led by Partners Octavian Cazac and Alexander Turcan, supported by Associates Ana Galus, Vladimir Palamarciuc, and Alexander Tuceac.

The Vernon | David team was led by Partner Diana Neagu and included Partner Maria Nica and Senior Associate Roman Ivanov.

Schoenherr team consisted of Attorney Vladimir Iurkovski and Associates Andrian Guzun and Denis Lefter in Moldova and Partner Catalin Suliman and Attorney Georgeta Gavriloiu in Romania.

Our Latest Issue