VEON Completes Sale of Beeline Kyrgyzstan

Rhea-AI Summary

VEON Ltd. (Nasdaq: VEON) has completed the sale of its 50.1% indirect stake in Sky Mobile LLC (Beeline Kyrgyzstan) to state-owned Eldik Bank. The transaction occurred after the Kyrgyz Government exercised its right of first refusal, following VEON's initial intent to sell to CG Cell Technologies in March 2024.

The divestment aligns with VEON's strategy to simplify its group structure and optimize its portfolio, focusing on markets with larger populations and opportunities for scalable digital businesses. The sale was executed through Menacrest AG, with Eldik Bank paying the full transaction value upon completion.

Positive

• Strategic portfolio optimization focusing on larger markets
• Full transaction value received upon completion
• Successful exit from non-core market

Negative

• Loss of established 4G network presence in Kyrgyzstan
• Reduction in geographical market diversity

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Dubai, August 13, 2025: VEON Ltd. (Nasdaq: VEON), a global digital operator (“VEON”), announces that it has completed the sale of its 50.1% indirect stake in Sky Mobile LLC, operating under the Beeline brand in Kyrgyzstan, to Open Joint Stock Company “Eldik Bank” (“Eldik Bank”). The transaction was completed following receipt of all necessary regulatory approvals.

This transaction follows VEON’s previously announced strategy to simplify its group structure and optimize its portfolio, focusing on countries with larger populations and with opportunities to grow multiple scalable digital businesses in addition to its connectivity offerings.

The sale was conducted through Menacrest AG, the parent company of Sky Mobile LLC¹. After VEON announced its intent to sell its stake in Beeline Kyrgyzstan to CG Cell Technologies on March 26, 2024, the Government of the Kyrgyz Republic exercised its right of first refusal and designated Eldik Bank, a state-owned financial institution, to acquire 100% of Sky Mobile LLC for and on behalf of the Government. As previously announced, the parties then entered into negotiations regarding the terms of the sale. Eldik Bank paid the full transaction value upon completion.

“The sale of our Kyrgyzstan operations marks another important step in VEON’s portfolio optimization,” said Kaan Terzioglu, VEON Group CEO. “Beeline Kyrgyzstan has excelled in expanding 4G coverage and advancing our digital operator model, and we are confident this exceptional team will continue to thrive under Eldik Bank’s ownership. We thank our joint venture partner, Verny Capital, and the Government of Kyrgyzstan.”

About VEON
VEON is a Nasdaq-listed digital operator that provides converged connectivity and digital services to over 160 million customers. Operating across five countries that are home to more than 6% 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.

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 investment 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 Information 
VEON
Hande Asik
Group Director of Communications and Strategy
pr@veon.com

¹ VEON holds a 50.1% indirect stake in Menacrest AG, and the remaining 49.9% is held by Crowell Investments Limited, part of Verny Capital Group.

 

FAQ

What is the reason for VEON selling Beeline Kyrgyzstan?

VEON is executing its strategy to simplify group structure and optimize its portfolio, focusing on countries with larger populations and opportunities for scalable digital businesses.

Who purchased VEON's stake in Beeline Kyrgyzstan?

Eldik Bank, a state-owned financial institution, acquired VEON's 50.1% stake in Beeline Kyrgyzstan on behalf of the Government of Kyrgyz Republic.

When did VEON initially announce its intent to sell Beeline Kyrgyzstan?

VEON initially announced its intent to sell its stake to CG Cell Technologies on March 26, 2024.

How much did VEON own in Beeline Kyrgyzstan before the sale?

VEON owned a 50.1% indirect stake in Sky Mobile LLC, which operated under the Beeline brand in Kyrgyzstan.

What happened to VEON's original sale agreement with CG Cell Technologies?

The Government of the Kyrgyz Republic exercised its right of first refusal and designated Eldik Bank to acquire the stake instead of CG Cell Technologies.