VEON Announces Partial Disposition of Bangladesh Tower Assets to Summit for $100 Million

Amsterdam, November 15, 2023 - VEON Ltd. VEON, a leading global provider of connectivity and internet services, has disclosed that its subsidiary Banglalink has initiated a strategic asset sale. The deal involves divesting a portion of its telecommunications towers located in Bangladesh. This arrangement has been made with Summit, a regional infrastructure investor, for a substantial consideration of USD 100 million. Such a transaction aligns with VEON's asset-light strategy to optimize its capital allocation and to focus more on its core operations and digital services expansion.

Strategic Divestiture for Growth

The sale is pivotal for VEON as it seeks to create a leaner corporate structure by reducing its physical asset base. The infusion of USD 100 million will bolster its balance sheet and will provide additional liquidity to fund its strategic initiatives, particularly in digital services that have become a main growth area for the company. The scaling down of its tower assets is a significant step for VEON in becoming an asset-light enterprise, enabling greater agility and operational efficiency within the high-potential Bangladeshi market.

Impact on VEON's Market Presence

While the transaction involves a partial sale, VEON assures that this move will not hinder its ability to provide high-quality services to its customers in Bangladesh. The agreement allows for continued access to the towers, ensuring that VEON and its Bangladeshi subsidiary Banglalink can maintain their service quality and network coverage without interruption. It reflects a pragmatic approach to asset management, ensuring that the company remains competitive in a market where digital infrastructure is increasingly paramount.

Future Outlook for VEON

The focus on asset-light operations is indicative of VEON's commitment to a future-proof business model. With the deal expected to close subject to customary regulatory approvals, VEON looks to enhance shareholder value through strategic divestitures and investments in growth areas. VEON's leadership believes that this move will improve the company's financial flexibility and will support sustained profitability and strategic business ventures in the rapidly evolving telecommunications industry.

VEON, Telecommunications, AssetSale