VEON Divests Part of Its Tower Assets in Bangladesh for USD 100m

Amsterdam and Dhaka, 15 November 2023 - VEON Ltd. VEON, an international digital operator specializing in converged connectivity and online services, has recently announced a significant move in its asset management strategy. Under its subsidiary Banglalink, the company has forged a USD 100 million agreement to offload a portion of its tower infrastructure located in Bangladesh. This transaction marks a strategic shift for VEON as it adopts a more asset-light business model, reallocating capital and resources to bolster its digital services sphere.

Strategic Implications of the Sale

The sale of these tower assets provides VEON with substantial liquidity that can potentially be reinvested to enhance its core service offerings such as mobile and fixed-line telecommunications. VEON's decision underscores a broader industry trend in telecommunications where operators seek to maximize the efficiency of their capital. By divesting non-core assets, such as passive tower infrastructure, telecom operators like VEON can focus on expanding their service footprint, investing in network quality, and enhancing customer experience within the fast-evolving digital ecosystem.

Operational Benefits for VEON

Headquartered in Amsterdam, Netherlands, VEON Ltd. serves as a pivotal player in the global telecommunication industry. The sale of the tower assets not only injects additional capital into the company's war chest but also simplifies its operational model. This strategic maneuver enables VEON to more effectively manage its diverse portfolio and realign its business strategy with growth in digital platforms and value-added services, reinforcing its market position as a leading digital operator in competitive markets.

investment, telecommunications, strategy