London Daily

Focus on the big picture.
Tuesday, Apr 07, 2026

Whitehall extends national security probe into Truphone deal

Whitehall extends national security probe into Truphone deal

Officials will take up to 45 additional working days to scrutinise the purchase of Truphone's assets by Hakan Koc, a German entrepreneur, Sky News learns.
The government has extended a national security probe into the fire-sale of a leading British mobile phone technology provider whose owners include Roman Abramovich.

Sky News has learnt that officials at a division of the Department for Business, Energy and Industrial Strategy (BEIS) are to take up to 45 additional working days to scrutinise the purchase of Truphone assets by Hakan Koc, a billionaire German technology entrepreneur.

The extension, which prohibits the sale from being completed, has been ordered by the Investment Security Unit (ISU) under the National Security and Investment Act (NS&I).

Sources said the decision to extend the inquiry did not itself imply that the government would seek to block the deal, with one executive close to the process expressing confidence on Friday that it could yet close before the end of this month.

Kwasi Kwarteng, the business secretary who is widely expected to be named chancellor in a Liz Truss-led administration, is understood to be being kept informed of developments.

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

The company holds an embryonic remote SIM provisioning contract with BT Group, which they said triggered potential concerns in relation to 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 their purchase of Truphone's assets.

Mr Koc is also said to be preparing to introduce a monitoring system for app-based messaging services into Truphone's products, enabling investment banks' compliance departments to more effectively supervise employees' use of such platforms.

This follows a slew of fines issued by US regulators against major banks for failing to prevent the use of services such as WhatsApp for sensitive work-related activities.

A person close to Mr Koc said his objective was to transform Truphone into a UK-based global technology champion.

A number of deals have already been scrutinised under the new NS&I legislation, with several having been extended before being cleared.

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

It is said to have been within weeks of running out of cash, with emergency funding understood to have been discussed in recent weeks.

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

A sale process was run for Truphone before the summer, with Mr Koc being selected as the preferred bidder on an exclusive basis.

An insider told Sky News in July that 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 in June 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.

Mr Koc declined to comment on Friday, while a government spokesman previously said in relation to the investigation: "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."
Newsletter

Related Articles

0:00
0:00
Close
UK Denies Visa to Kanye West After Sponsors Withdraw from Wireless Festival
Trump-Era Forest Service Restructuring Leads to Closure of UK Lab Focused on Kentucky Woodland Health
Foreign Students in the UK Describe Harsh Living Conditions and Financial Pressures
Reform UK Proposes Visa Restrictions on Nations Pursuing Reparations Claims
Public Reaction Divides Over UK Decision to Bar Kanye West
Calls Grow for UK to Review US Base Access Following Concerns Over Escalating Rhetoric
UK Indicates It Will Not Permit Use of Its Bases for Potential US Strikes on Iran’s Energy Infrastructure
UK Prime Minister Defends Decision to Bar Kanye West, Questions Festival Booking
UK Accelerates Efforts to Harmonise Medical Technology Rules with United States
Wireless Festival Cancelled After Kanye West Denied Entry to the United Kingdom
Operation Europe: Trump Deploys Vance to Hungary to Save the EU
King Charles Faces Criticism From Some UK Christians Over Absence of Easter Message
Former UK Defence Secretary Raises Concerns Over Ability to Counter Iran Missile Threat
UK Signals Non-Involvement in Iran Conflict as Trump Reasserts Firm Deterrence Stance
US and UK Strengthen Medical Device Cooperation Following Tariff Removal
Trump Backs Steve Hilton for California Governor, Highlighting Reform Agenda
UK Seeks Closer Ties With Anthropic as AI Policy Divergence Emerges Across Atlantic
Experts Warn of Evolving Extremism After Teens Arrested in UK Ambulance Arson Case
UK Convenes Talks to Safeguard Shipping Through Strait of Hormuz After Conflict Escalation
Trump Highlights Strong Leadership in Critique of UK Stance on Iran
UK Authorities Review Kanye West’s Entry Status Following Festival Backlash
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
×