VEON Announces Sale of Stake in Beeline Kyrgyzstan, increasing the focus on its large markets
VEON announces the sale of its 50.1% stake in Beeline Kyrgyzstan to CG Cell Technologies, focusing on its digital operator model. The transaction values Beeline Kyrgyzstan at 3.4x 2023 EBITDA. The sale aligns with VEON's strategy to simplify its structure and concentrate on key markets for digital services.
03/26/2024 - 08:07 AM
Amsterdam, 26 March 2024 : VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator that provides converged connectivity and online services, announces that it has signed an agreement for the sale of its 50.1% indirect stake in Beeline Kyrgyzstan to CG Cell Technologies, which is wholly owned by CG Corp Global.
The sale is a part of VEON’s strategy to simplify the Group’s structure and focus on its large markets where it can create scale with its DO1440 digital operator model, providing digital services in finance, entertainment, healthcare and education. The transaction values Beeline Kyrgyzstan’s business at 3.4x 2023 EBITDA (pre-IFRS16).
“Over the past 2 years, we have transformed Beeline Kyrgyzstan into a winning operation, with 7 consecutive quarters of double-digit revenue growth, high penetration and quality of 4G services and solid foundations in digital offerings. I am proud of the work that the team has achieved under Andrey Pyatakhin’s leadership; and pleased to pass the baton to Chaudhary Group to develop Beeline’s work further and with greater focus, supporting the digital transformation of Kyrgyzstan,” said Kaan Terzioglu, Group CEO of VEON.
CG Corp Global issued the following statement on the agreement: “We are very pleased to become a major investor in the Kyrgyzstan telecommunications market with the purchase of the majority stake in Beeline Kyrgyzstan. We are excited to cooperate with our partners in this joint venture as we continue to develop the business, ensuring that customers continue to get the modern, high-quality and reliable connectivity and digital services they have come to expect.”
Completion of the sale of VEON’s stake in Beeline Kyrgyzstan, which is held by VIP Kyrgyzstan Holding AG, to CG Cell Technologies Designated Activity Company is subject to relevant regulatory approvals.
About CG Corp Global
About VEON 7% of the world’s population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. Headquartered in Amsterdam, VEON is listed on NASDAQ and Euronext. For more information visit: www.veon.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 strategy and divestment plans. 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 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.
Contact
VEON pr@veon.com
What stake is VEON selling in Beeline Kyrgyzstan?
VEON is selling its 50.1% indirect stake in Beeline Kyrgyzstan.
Who is acquiring the stake in Beeline Kyrgyzstan?
CG Cell Technologies, wholly owned by CG Corp Global, is acquiring the majority stake in Beeline Kyrgyzstan.
What is the valuation of Beeline Kyrgyzstan's business in the transaction?
The transaction values Beeline Kyrgyzstan's business at 3.4x 2023 EBITDA.
What is VEON's strategic focus with this sale?
VEON aims to simplify its structure and concentrate on key markets to enhance its digital services.
Who will lead Beeline Kyrgyzstan after the sale?
Chaudhary Group will take over the development of Beeline Kyrgyzstan after the sale.
