The government has expanded a national security investigation into the sale of a leading British mobile phone technology supplier whose owners include Roman Abramovich.
Sky News learned that officials at a division of the Department of Business, Energy and Industrial Strategy (BEIS) took an additional 45 business days to scrutinize Hakan Koc’s purchase of Truphone assets, a billion German tech entrepreneur.
The expansion, which prohibits the completion of a sale, was ordered by the Security Investment Unit (ISU) under the National Security and Investment Act (NS&I).
Sources said the decision to extend the investigation did not mean the government would seek to block the deal, with an executive close to the process expressing confidence on Friday that it could close first. at the end of this month.
Kwasi Kwarteng, the business secretary who is widely expected to be appointed prime minister in the administration led by Liz Truss, is understood to be kept informed of developments.
Truphone is a mobile virtual network operator in nine countries, with a focus on international corporate clients such as investment banks.
The company holds an embryonic remote SIM supply contract with BT Group, which it said raised potential concerns regarding the takeover.
Sources told Sky News in July that Mr. Koc had indicated that he and his fellow acquirer, Pyrros Koussios, were prepared to exclude that contract from purchasing Truphone’s assets.
Koc is also reportedly preparing to include an app-based messaging monitoring system in Truphone products, allowing investment banks’ compliance departments to more effectively monitor usage. those employee backgrounds.
This follows a series of fines issued by US regulators to major banks for failing to prevent the use of services like WhatsApp for sensitive work-related activities. .
A person close to Mr Koc said his goal is to turn Truphone into a UK-based global tech champion.
Several transactions have been scrutinized under the new NS&I law, with some being extended before passage.
The delay in the sale of Truphone’s assets comes during difficult times for the company.
It is said to have run out of cash within weeks, with emergency funding understood to have been discussed in recent weeks.
More than 400 people work for the company in the UK and abroad.
A sales process was in place for Truphone before the summer, with Mr Koc selected as the preferred bidder on an exclusive basis.
An insider told Sky News in July that issuing the temporary order had produced “bad” results as Truphone effectively existed for a longer period of time in the ownership of a Russian oligarch who had punished.
Mr Abramovich and two Russian business partners are said to have invested more than £300 million in Truphone during their time as shareholders.
The tycoon has presided over the most famous British property sale since Vladimir Putin’s invasion of Ukraine, in the form of the £2.5 billion sale of Chelsea Football Club.
Mr Koc is a German-born businessman who co-founded the used car platform Auto1.
It listed in Frankfurt last year, and although its value has fallen relative to tech stocks listed around the world, it has crystallized Mr. Koc’s position among the super-rich.
The government has been under pressure to demonstrate that the new national security laws are being applied forcefully, prompting Mr Kwarteng’s department to announce in June that they are working well – despite concerns raised by Mr. some of the City’s leading law firms.
“The government is focused on growing our economy and upgrading every part of the UK, but this won’t come at the expense of our national security,” he said.
“This report shows our new investment screening process in action.
“It’s simple and fast, giving companies the speed and certainty to do business in a way that protects UK security.”
In total, more than 200 transactions were notified to the government during the first three-month period after the act became law.
Mr Koc declined to comment on Friday, while a government spokesman earlier said in relation to the investigation: “While commercial transactions remain largely an issue for the parties involved, The government regularly 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.”
