VEON files motion with Kyiv Court challenging the freezing of corporate rights in Kyivstar
30 Octobre 2023 - 4:29PM
VEON files motion with Kyiv Court challenging the freezing of
corporate rights in Kyivstar
Amsterdam, 30 October 2023 – VEON Ltd. (NASDAQ: VEON,
Euronext Amsterdam: VEON), a global digital operator that provides
converged connectivity and online services, today announces that
VEON Ltd. and VEON Holdings B.V. have filed two motions with the
relevant Kyiv district court, challenging the freezing of the
corporate rights in Kyivstar, which was initially announced on the
website of the Security Services of Ukraine (SSU) on 6 October
2023.
Noting that corporate rights in Kyivstar belong exclusively to
VEON, and that their full or partial seizure directly violates the
rights of VEON and its international debt and equity investors,
VEON requested the lifting of the freezing of its corporate rights
in Kyivstar.
In its filings, the Company also reiterated that any action
aimed at the rights, benefits or funds of sanctioned individuals -
the alleged reason for seizure of corporate rights as per the SSU
statement - cannot legitimately be directed toward Kyivstar or
VEON. Sanctioned individuals do not own any shares in VEON or
Kyivstar; they cannot exercise any rights regarding VEON or
Kyivstar; are not a part of either company’s governance mechanisms,
including boards; do not have the ability to control or influence
decisions made by VEON or Kyivstar; and do not derive any economic
benefits from VEON or any of its operating companies.
“VEON is taking all the necessary steps to protect the rights of
our company, our wholly owned subsidiary Kyivstar and our
international investors. The impeccable track record of VEON and
Kyivstar in serving Ukraine, the dialogue we established last week
in Ukraine during our Board delegation’s visit and the continued
availability of appeal mechanisms and procedures give me confidence
that that we will achieve our dual goal of addressing the concerns
of Ukrainian authorities while protecting our rights,” said Kaan
Terzioglu, VEON Group CEO.
As of the time of publication, neither VEON nor Kyivstar have
officially been served the initial court order seizing corporate
rights in Kyivstar, or the amended court order dated 13 October
2023, reducing the percentage of seized corporate rights to 47.85%
of the shares. If the motions are rejected, or if the court does
not otherwise voluntarily rescind its order, further steps remain
available to VEON within the framework of Ukrainian law, including
filing an appeal to a higher court.
As clarified in VEON’s 12 October 2023 statement, a corporate
rights freeze does not amount to asset seizure. The measure
prevents changes to ownership and was introduced to protect
material evidence while criminal proceedings, unrelated to Kyivstar
or VEON, are in progress. As confirmed in the SSU
announcement, “The seizure of corporate rights of Ukrainian
companies does not affect the protection of the interests of
foreign investors and owners of shares of corporate rights, does
not hinder their economic activity and the possibility of receiving
dividends.”
With no significant impact on its operations, Kyivstar continues
to serve its 25 million customers and keep Ukraine connected with
94% network availability, continuing its services with full
operational integrity in line with the national security priorities
of Ukraine.
About VEON VEON is a 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. Headquartered in Amsterdam, VEON is
listed on NASDAQ and Euronext.
For more information visit: https://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 governance, ownership 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 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.
Contact Information
VEON Hande Asik Group Director of Communication
pr@veon.com
TUVA Partners Julian Tanner julian.tanner@tuvapartners.com
VEON (EU:VEON)
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