Business department to reportedly halt Truphone asset sale

According to Sky News, officials at the Department for Business, Energy and Industrial Strategy issued an interim order which blocked the purchase of assets of Truphone, which is part-owned by former Chelsea owner Roman Abramovich by Hakan Koc - a German entrepreneur. 

The order, made under the new National Security and Investment Act, means the sale to Koc cannot take place until a review is completed. Business secretary Kwasi Kwarteng is understood to have signed off on the decision. 

The outlet has been told by city sources that Truphone held an embryonic remote SIM provisioning contract with BT Group, which they said may have triggered concerns in relation to the deal. 

Koc’s deal with Truphone’s advisers is reported to have been struck for £1, but is also understood to include a sizable deferred consideration based on the company’s performance. The delay to the sale of assets comes during a fraught period for the loss-making company. 

It’s said to be within weeks of running out of cash - which could mean its directors could place it into administration if the deal fails to go through. A sale process has already been run for Truphone over recent months, with Koc being selected as the preferred bidder on an exclusive basis. 

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

It comes as the government has come under pressure to demonstrate the new national security laws are being applied robustly, leading to Kwarteng’s department declaring last month that they were working well. This is despite the concerns expressed by a number of leading law firms in the city.