VEON and Summit Complete USD 100m Deal for Bangladesh Towers Portfolio
31 Janvier 2024 - 2:30PM
Amsterdam and Dhaka, 31 January 2024:
VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global
digital operator that provides converged connectivity and online
services, announces that, further to the announcement dated 15
November 2023, and the legal transfer of towers in December 2023
following the receipt of all regulatory approvals, its wholly owned
subsidiary Banglalink has completed the sale of part of its tower
portfolio in Bangladesh to Summit Towers Limited for a
consideration of approximately BDT 11 billion (c. USD 100
million).
With this transaction, Summit Towers Limited, a
subsidiary of Summit Communications Group, the largest
Telecommunications Infrastructure Company in Bangladesh, took
ownership of 2,012 Banglalink towers. Under the terms of the Master
Tower Agreement between the parties, Banglalink secures the
provision of tower infrastructure services for an initial period of
12 years, with potential extensions.
“This sale marks an important milestone for us,
as we continue to successfully execute our strategy to transform
VEON into an asset-light digital operator. This is a first and an
important step in crystalizing the value of our infrastructure
assets in Bangladesh, enabling Banglalink to focus on delivering
value as a digital operator that offers its customers locally
relevant digital services,” said Kaan Terzioglu, Group CEO of
VEON.
“Over the past year and a half, we have
successfully doubled our network capacity and extended coverage
nationwide, prioritizing widespread 4G accessibility for all. This
strategic expansion has significantly enhanced the quality of
services offered to the people of Bangladesh. Our collaboration
with Summit Towers allows us to take the next step in the efficient
management of infrastructure resources in line with our asset-light
strategy. This will enable us to focus more on our services and
digital innovation such as Toffee and MyBL,” said Erik Aas, CEO
of Banglalink.
“We are delighted to have successfully finalized
the deal within the mutually agreed timeline. Acquiring the
ownership of the towers in this deal adds to our portfolio of 4,500
towers in the Bangladesh market. This, coupled with a fiber optic
network spanning over 55,000 km and the upcoming submarine cable,
will position Summit Communications Group as the country's primary
end-to-end digital infrastructure provider, fulfilling a dream set
over a decade ago," said Muhammad Farid Khan, Chairman of Summit
Communications Limited and Summit Towers Limited.
The proceeds from the deal will primarily be
used to fulfill Banglalink’s financial commitments and generate
cost efficiencies, freeing up resources for the company’s digital
expansion. In line with VEON Group’s asset-light strategy, VEON and
Banglalink will continue to evaluate and pursue collaborative
opportunities related to Banglalink's remaining tower
portfolio.
Nomura International Plc, Allen Overy LLP and
Dr. Kamal Hossain & Associates were the financial and legal
advisors to Banglalink on this deal. Additionally, KPMG Bangladesh
provided support in conducting due diligence and tax
assessments.
About Banglalink
With a customer base exceeding 40 million users,
Banglalink serves Bangladesh with innovative products and services.
Having successfully transformed itself into a nationwide digital
operator, Banglalink is recognized globally for its high-quality 4G
connectivity and cutting-edge digital services, further
contributing to the goal of bridging the digital divide for
all.
About Summit Communications Group
Summit Communications Group (SComm Group) is a
group of companies headquartered in Bangladesh operating and
maintaining 53,000km fiber optic network, 4500 towers and serving
35% of Bangladesh’s internet demand while building the country’s
first private submarine cable. SComm Group provides
telecommunications infrastructure across all 64 districts and 495
upazillas of Bangladesh maintaining an average uptime of 99.9% with
state-of-the-art network topology and design.
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:
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
VEONHande Asik Group Director of Communications
pr@veon.com
TUVAJulian TannerJulian.Tanner@tuvapartners.com
VEON (NASDAQ:VEON)
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