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Roman Abramovich invests £70m in UK firm Truphone Roman Abramovich invests £70m in UK firm Truphone
(35 minutes later)
Roman Abramovich has made his first investment in a UK business since buying Chelsea football club, with a stake in the telecoms group Truphone, which values the company at £300m. Roman Abramovich has made his largest investment in a UK company since buying Chelsea football club, taking a stake in telecoms group Truphone which values the business at £300m.
Truphone's technology allows travellers in the US, the UK and Australia, to use a mobile to call, text and access the web at local rates without having to change handset or sim card.Truphone's technology allows travellers in the US, the UK and Australia, to use a mobile to call, text and access the web at local rates without having to change handset or sim card.
The Russian billionaire is paying £70m for a 23.3% stake, an investment which reunites Abramovich with his principal business partner in the mining and metal group Evraz, where the majority of his fortune is held. The Russian billionaire is paying £70m for a 23.3% stake, an investment which reunites Abramovich with his principal business partner in the mining and metal group Evraz.
Evraz chairman, Alexander Abramov, held 80% of Truphone before this funding round and his stake will be diluted to about 60%. The company is led by chief executive, Steve Robertson, who created and ran BT's network division, Openreach, until 2011.Evraz chairman, Alexander Abramov, held 80% of Truphone before this funding round and his stake will be diluted to about 60%. The company is led by chief executive, Steve Robertson, who created and ran BT's network division, Openreach, until 2011.
The funding will be used to double the headcount, employing 500 extra staff over the next 18 months, and expand the Truphone service to the Netherlands, Hong Kong, Germany, Spain and Poland.The funding will be used to double the headcount, employing 500 extra staff over the next 18 months, and expand the Truphone service to the Netherlands, Hong Kong, Germany, Spain and Poland.
"I have been a Chelsea supporter since I moved to London in 1981," said Robertson. "If we can make Truphone as successful as Chelsea I will be a very happy guy.""I have been a Chelsea supporter since I moved to London in 1981," said Robertson. "If we can make Truphone as successful as Chelsea I will be a very happy guy."
The investment is Abramovich's first in telecoms, but Russia's oligarchs are taking a keen interest in the sector. Mikhail Fridman holds stakes in mobile carriers including Russia's VimpelCom and Turkey's Turkcell. He sold down his stake in Alisher Usmanov's mobile venture Megafon prior to its recent London listing.The investment is Abramovich's first in telecoms, but Russia's oligarchs are taking a keen interest in the sector. Mikhail Fridman holds stakes in mobile carriers including Russia's VimpelCom and Turkey's Turkcell. He sold down his stake in Alisher Usmanov's mobile venture Megafon prior to its recent London listing.
Robertson said representatives of Abramovich's asset management vehicle Millhouse had tested the service extensively before committing. The investment is being made via Minden, which is linked to Millhouse.Robertson said representatives of Abramovich's asset management vehicle Millhouse had tested the service extensively before committing. The investment is being made via Minden, which is linked to Millhouse.
"They are real believers that what Truphone does and the way we are doing it can be a game-changer in the industry," said Robertson. "Their investment is an important part of allowing us to fulfil the potential of our business.""They are real believers that what Truphone does and the way we are doing it can be a game-changer in the industry," said Robertson. "Their investment is an important part of allowing us to fulfil the potential of our business."
Truphone was founded six years ago by James Tagg, a British inventor who developed the touchscreens used in ticket machines on London's tube network. Tagg remains with the company as chief technology officer. The business was born when Tagg, frustrated by the poor mobile signal at his home in Kent, found a way to make mobile phone calls over the internet.Truphone was founded six years ago by James Tagg, a British inventor who developed the touchscreens used in ticket machines on London's tube network. Tagg remains with the company as chief technology officer. The business was born when Tagg, frustrated by the poor mobile signal at his home in Kent, found a way to make mobile phone calls over the internet.