VEON and Engro Corporation Complete Pioneering Infrastructure Partnership in Pakistan

Rhea-AI Summary

VEON Ltd. (NASDAQ: VEON) has successfully completed a strategic infrastructure partnership with Engro Corporation in Pakistan. The deal, valued at USD 562.7 million, involves transferring VEON's telecommunications infrastructure assets from Deodar (Private) Limited to Engro Connect, Engro Corp's subsidiary. Jazz, VEON's digital operator, will maintain long-term access to this infrastructure for mobile voice and data services through a leasing agreement. This partnership, initially announced in December 2024 and approved by regulators in May 2025, aligns with VEON's asset-light strategy and aims to accelerate Jazz's transformation into a comprehensive digital services provider offering financial services, entertainment, healthcare, and enterprise solutions.

Positive

• Strategic partnership valued at USD 562.7 million, demonstrating significant asset value
• Long-term infrastructure access secured through leasing agreement with Engro Connect
• Enables Jazz's transformation into a comprehensive digital services company
• Aligns with VEON's asset-light strategy, potentially improving operational efficiency

Negative

• Reduction in direct infrastructure ownership may limit future operational flexibility
• Increased dependence on third-party infrastructure management

Islamabad and Dubai, June 3, 2025: VEON Ltd. (Nasdaq: VEON), a global digital operator (“VEON” or “the Company”), announces that it has successfully closed the partnership for the pooling and management of telecommunications infrastructure assets in Pakistan with Engro Corporation Limited (“Engro Corp”).

VEON’s infrastructure assets housed under Deodar (Private) Limited have now vested into Engro Connect, a subsidiary of Engro Corp. VEON’s digital operator Jazz will continue to lease Deodar’s extensive infrastructure for the provision of nationwide mobile voice and data services under a long-term partnership agreement.

"Completion of this partnership marks another milestone in the execution of our asset-light strategy. Thanks to the visionary approach of Pakistani authorities, which enabled the successful completion of this partnership, Jazz can now further accelerate its transformation into a services company, with a connectivity-powered digital portfolio spanning financial services, entertainment, healthcare, and enterprise services for both consumers and businesses. We look forward to a fruitful partnership with Engro Corp and to contributing to our shared mission of strengthening Pakistan’s digital economy,” said Kaan Terzioglu, VEON Group CEO and Chairman of Jazz Board.

The scheme of arrangement was completed at an enterprise value of USD 562.7 million. The partnership, which was originally announced on December 5, 2024, obtained regulatory approvals in May 2025.

About VEON

VEON is a Nasdaq-listed digital operator that provides converged connectivity and digital services to nearly 160 million customers.  Operating across six countries that are home to more than 7% of the world’s population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. For more information visit: www.veon.com.

About Jazz

Jazz is Pakistan’s leading digital operator with over 71.5 million cellular subscribers and 73 million MAUs of digital services as of Q4 2024. Jazz offers the most extensive portfolio of digital services in Pakistan, including JazzCash, the country’s leading fintech; Garaj, the largest onshore cloud and cybersecurity platform; and Tamasha, Pakistan’s largest homegrown OTT video streaming and entertainment platform.

About Engro Corporation Limited

Engro Corporation is a diversified Pakistani conglomerate that strives to solve pressing issues through its portfolio of businesses. It has developed businesses across the verticals of energy and related infrastructure, petrochemicals, food and agriculture, telecommunication infrastructure, and international trading, over a period of 50+ years. Many of these pioneering businesses have been established in collaboration with global partners including IFC, Royal Vopak, Royal FrieslandCampina, CMEC and others. To learn more about Engro Corporation, please visit www.engrocorporation.com.

Disclaimer

This release contains “forward-looking statements”, as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and include statements relating to, among other things, VEON’s investment plans, digital products, business plans and commercial partnerships. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.

VEON
Hande Asik
Group Director of Communications
pr@veon.com

FAQ

What is the value of VEON's infrastructure partnership with Engro Corporation?

The partnership was completed at an enterprise value of USD 562.7 million

When did VEON announce the infrastructure partnership with Engro Corp?

The partnership was originally announced on December 5, 2024, and received regulatory approvals in May 2025

How will the VEON-Engro partnership affect Jazz's operations in Pakistan?

Jazz will continue to lease the infrastructure for mobile voice and data services while transforming into a digital services company offering financial services, entertainment, healthcare, and enterprise solutions

What assets are included in the VEON-Engro infrastructure deal?

The deal includes VEON's telecommunications infrastructure assets previously housed under Deodar (Private) Limited, which have now been transferred to Engro Connect

What is the strategic significance of this partnership for VEON?

This partnership aligns with VEON's asset-light strategy and enables Jazz to accelerate its transformation into a services company with a connectivity-powered digital portfolio