Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Kwarteng uses new national security law to halt Truphone asset sale

Kwarteng uses new national security law to halt Truphone asset sale

The sale of a mobile phone tech provider part-owned by Roman Abramovich has been postponed by the government's decision to launch a national security probe into the deal, Sky News learns.
The firesale of a leading British mobile phone technology provider whose owners include Roman Abramovich has been halted by the government amid a national security probe into the deal.

Sky News has learnt that officials at the Department for Business, Energy and Industrial Strategy (BEIS) issued an interim order this week to block the purchase of Truphone's assets by Hakan Koc, a billionaire German entrepreneur.

The order, made under the new National Security and Investment Act, means the sale to Mr Koc cannot take place until a review is completed.

Kwasi Kwarteng, the business secretary, is understood to have signed off the decision.

This weekend, it was unclear on what basis the order had been issued, although it is said to have been prompted by the security services.

Truphone is a mobile virtual network operator in nine countries, focusing on international corporate clients such as investment banks.

City sources said that Truphone held an embryonic remote SIM provisioning contract with BT Group, which they said may have triggered concerns in relation to the deal.

They added that Mr Koc had indicated that he and his fellow acquirer, Pyrros Koussios, were prepared to exclude that contract from their purchase of Truphone's assets.

The entrepreneurs' deal with Truphone's advisers is reported to have been struck for £1, but is also understood to include a sizeable deferred consideration based on the company's performance.

The delay to the sale of Truphone's assets comes during a fraught period for the loss-making company.

It is said to be within weeks of running out of cash, which could mean its directors have little option but to place it into administration if the deal fails to go through.

More than 400 people work for the company in the UK and overseas.

A sale process has already been run for Truphone over recent months, with Mr Koc being selected as the preferred bidder on an exclusive basis.

One source said the issuing of the interim order had produced the "perverse" outcome of Truphone effectively remaining for a longer period in the ownership of an already-sanctioned Russian oligarch.

Mr Abramovich and two Russian business partners are said to have invested more than £300m in Truphone during their time as shareholders.

The oligarch has already presided over the most prominent sale of a British asset since Vladimir Putin's invasion of Ukraine, in the form of the £2.5bn sale of Chelsea Football Club.

Mr Koc is a German-born businessman who co-founded the used-car platform Auto1.

That listed in Frankfurt last year, and although its valuation has since fallen in line with listed technology stocks around the world, it crystallised Mr Koc's status among the super-rich.

The government has come under pressure to demonstrate that the new national security laws are being applied robustly, leading Mr Kwarteng's department to declare last month that they were working well - despite concerns expressed by a number of leading City law firms.

"The government is laser-focused on growing our economy and levelling up every part of the UK, but this will not come at the cost of our national security," he said.

"This report shows our new investment screening process is working.

"It's simple and quick, giving firms speed and certainty to do business in a way that protects the security of the UK."

In total, more than 200 transactions were notified to the government during the first three-month period after the act became law, with 17 deals being called in by officials.

On Saturday, Mr Koc declined to comment, while a government spokesman said: "While commercial transactions remain primarily a matter for the parties involved, the government routinely monitors acquisitions across the economy in case of national security concerns. 

"The Business Secretary has powers under the National Security & Investment Act to intervene in acquisitions where necessary."

One City insider close to the proposed Truphone transaction said the decision to call it in, with the potential risk to jobs, raised questions about whether the new law was being applied correctly.

"The government is risking throwing the baby out with the bathwater," the person said.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
×