Abramovich’s $500 million company sold for $1

Roman Abramovich’s company Truphone is being sold to two European entrepreneurs for around a dollar, the English newspaper reports”The Times„.

The company was valued at $516 million in 2020.

Abramovich had to sell his shares in Chelsea football club last week due to sanctions.

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A British telecoms company owned by Russian oligarch Roman Abramovich is being sold to two European tech entrepreneurs for around a dollar, the English newspaper reports”The Times„.

Truphone offers electronic SIM cards for businesses and consumers. The company, which was valued at $500 million in 2020, has received nearly $375 million in investments from Abramovich and two business partners, Alexander Abramov and Alexander Frolov. According to the newspaper, Abramovich owns 23 percent of the company.

Truphone hired consultancy FRP to review its “strategic options” in April after sanctions were imposed on the former owner of Chelsea football club.

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According to The Times, one of the preferred bidders is entrepreneur Hakan Koc. However, competitors are concerned about Koc’s ties to co-owner Frolov, as his used-car marketplace Auto1 received money from a company run by Frolov’s son.

Koc would take 90 percent of Truphone, while his business partner, a former telecom executive and private equity investor, Pyrros Koussios, would own 10 percent of the company, the report said.

Abramovich has already had to sell Chelsea

Abramovich has already been forced to sell Chelsea after his UK assets were frozen over Russia’s war of aggression. The $5.3 billion deal was struck last month with a group led by LA Dodgers co-owner Todd Boehly and investment firm Clearlake.

Abramovich used to be one of the richest oligarchs in Russia with an estimated fortune of $14 billion. However, as a result of the sanctions, his wealth has more than halved.

According to the report, Truphone’s current owners have committed to investing more than $12 million and assuming contractual obligations. For example, one-time payments and debts, including a $660,000 fine for misrepresenting ownership by the company.

People familiar with the business tell the Times that previous owners will get back up to a third of the funds originally invested. However, Abramovich will not receive the funds while he is subject to sanctions.

Business Insider reached out to Truphone for comment.

This article was translated from English by Ben Peters. You can find the original here.

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