Going Asset-Light: VEON and Summit Reach USD 100m Deal for Partial Sale of Bangladesh Towers Portfolio
15 Novembro 2023 - 10:25AM
Going Asset-Light: VEON and Summit Reach USD 100m Deal for Partial
Sale of Bangladesh Towers Portfolio
Amsterdam and Dhaka, 15 November 2023 – VEON Ltd.
(NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator
that provides converged connectivity and online services, today
announces that its wholly owned subsidiary Banglalink has entered
into an agreement to sell part of its tower portfolio in Bangladesh
to Summit Towers Limited for BDT 11 billion - equivalent of roughly
USD 100 million. The deal includes a long-term service partnership
with Summit Towers.
Upon closing of the deal, more than 2,000 towers – about
one-third of Banglalink’s towers portfolio – will be transferred to
Summit Towers, a company majority-owned by Summit Communications
Group, a leading Bangladeshi infrastructure group.
Since 2021, VEON defines its value creation strategy around
three pillars: Asset-light business model and value crystallization
of tower assets, sustained growth in core business with the digital
operator strategy, and growth in adjacent markets – including
financial services, entertainment, education and healthcare – with
high-potential digital products. The agreement signed with Summit
Towers aligns with the asset-light pillar of VEON’s value creation
strategy and supports the Bangladesh Government’s goal of ensuring
maximum efficiency in utilization of infrastructure
resources.
“Across our markets, VEON operators are transforming into
asset-light digital operators. Today’s agreement marks a milestone,
ensuring efficient use of resources not only for Banglalink but
also for Bangladesh as a whole. This deal will enable us to focus
on our core business as the leading digital operator of the country
and continue addressing the unmet demand in entertainment,
education, healthcare and financial services,” said Kaan Terzioglu,
Group CEO of VEON.
“This strategic deal is a prelude to greater cooperation between
Banglalink and Summit, the largest integrated telecommunications
infrastructure company in Bangladesh. The future is ours to grow
together; and with support from VEON, we believe that our
collaboration will go beyond the boundaries of Bangladesh into the
global arena, setting an example in the region. We look forward to
continuing to work together,” said Muhammad Farid Khan, Chairman of
Summit Communications Limited and Summit Towers Limited.
“Banglalink has been successfully transforming into a
nation-wide digital operator, with internationally recognized1
high-quality 4G connectivity and leading digital services such as
Toffee and MyBL. Our partnership with Summit Towers enables
us to focus our resources on our digital offerings, bridging the
digital divide for all and providing an outstanding customer
experience to the people of Bangladesh.” said Erik Aas, CEO of
Banglalink.
The closing of the transaction is subject to regulatory
approvals from the Bangladesh Telecommunication Regulatory
Commission. The proceeds from the sale will primarily be used
to service Banglalink’s financial commitments, and for generating
cost efficiencies while freeing up resources for the company’s
digital expansion.
Nomura International Plc, Allen Overy LLP and Dr. Kamal Hossain
& Associates are acting as financial and legal advisors to
Banglalink.
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: 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 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 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
1 Recognized by Ookla® Speedtest Awards for fastest 4G internet
since 2021.
- VEON and Summit Reach USD 100m Deal for Partial Sale of
Bangladesh Towers Portfolio
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