In an Open Letter to VEON Investors, VEON Group CEO Welcomes the Unfreezing of VEON’s Corporate Rights on Kyivstar
VEON (Nasdaq: VEON) announces that the Shevchenkivskyi District Court of Kyiv has lifted the freezing of VEON's corporate rights in Kyivstar and other Ukrainian subsidiaries, which was imposed in October 2023. This decision removes concerns affecting market assessment of VEON's growth potential in Ukraine, one of its key operational markets. The company views this as positive for investors, Kyivstar's operations, and Ukraine's investment climate. VEON plans to explore opportunities for bringing international and local investors into Kyivstar, noting its position as the sole Ukrainian investment theme on U.S.-listed equity markets.
VEON (Nasdaq: VEON) annuncia che il Tribunale Distrettuale di Shevchenkivskyi di Kyiv ha revocato il congelamento dei diritti aziendali di VEON in Kyivstar e in altre filiali ucraine, che era stato imposto nell'ottobre 2023. Questa decisione rimuove le preoccupazioni che influenzavano la valutazione di mercato del potenziale di crescita di VEON in Ucraina, uno dei suoi mercati operativi chiave. L'azienda considera questo come un risultato positivo per gli investitori, per le operazioni di Kyivstar e per il clima di investimento in Ucraina. VEON prevede di esplorare opportunità per attrarre investitori internazionali e locali in Kyivstar, sottolineando la sua posizione come l'unico tema di investimento ucraino sui mercati azionari quotati negli Stati Uniti.
VEON (Nasdaq: VEON) anuncia que el Tribunal de Distrito de Shevchenkivskyi en Kyiv ha levantado el congelamiento de los derechos corporativos de VEON en Kyivstar y otras subsidiarias ucranianas, que se impuso en octubre de 2023. Esta decisión elimina las preocupaciones que afectaban la valoración de mercado del potencial de crecimiento de VEON en Ucrania, uno de sus mercados operativos clave. La empresa considera que esto es positivo para los inversores, para las operaciones de Kyivstar y para el clima de inversión en Ucrania. VEON planea explorar oportunidades para atraer inversores internacionales y locales a Kyivstar, destacando su posición como el único tema de inversión ucraniano en los mercados de acciones cotizados en Estados Unidos.
VEON (Nasdaq: VEON)은 키예프스타 및 기타 우크라이나 자회사에 대한 VEON의 기업 권리 동결을 해제했다는 발표를 했습니다. 이 결정은 우크라이나에서 VEON의 성장 잠재력에 대한 시장 평가에 영향을 미치는 우려를 제거했습니다. 우크라이나는 VEON의 주요 운영 시장 중 하나입니다. 이 회사는 투자자, 키예프스타의 운영 및 우크라이나의 투자 환경에 긍정적인 결과로 보고 있습니다. VEON은 키예프스타에 국제 및 지역 투자자를 유치할 기회를 탐색할 계획이며, 이는 미국에 상장된 주식 시장에서 유일한 우크라이나 투자 테마로서의 위치를 강조합니다.
VEON (Nasdaq: VEON) annonce que le tribunal de district de Shevchenkivskyi à Kiev a levé le gel des droits d'entreprise de VEON dans Kyivstar et d'autres filiales ukrainiennes, imposé en octobre 2023. Cette décision élimine les préoccupations affectant l'évaluation du marché du potentiel de croissance de VEON en Ukraine, qui est l'un de ses principaux marchés opérationnels. L'entreprise considère cela comme positif pour les investisseurs, les opérations de Kyivstar et le climat d'investissement en Ukraine. VEON prévoit d'explorer des opportunités pour attirer des investisseurs internationaux et locaux dans Kyivstar, soulignant sa position en tant que seul thème d'investissement ukrainien sur les marchés boursiers américains.
VEON (Nasdaq: VEON) gibt bekannt, dass das Shevchenkivskyi Bezirksgericht in Kiew das Einfrieren der Unternehmensrechte von VEON an Kyivstar und anderen ukrainischen Tochtergesellschaften, das im Oktober 2023 verhängt wurde, aufgehoben hat. Diese Entscheidung beseitigt Bedenken, die die Marktbewertung des Wachstumspotenzials von VEON in der Ukraine, einem seiner wichtigsten Betriebs Märkte, beeinträchtigten. Das Unternehmen sieht dies als positiv für Investoren, die Geschäftstätigkeit von Kyivstar und das Investitionsklima in der Ukraine. VEON plant, Möglichkeiten zu prüfen, um internationale und lokale Investoren in Kyivstar zu gewinnen und hebt die Position als einziges ukrainisches Investment-Thema an den in den USA notierten Aktienmärkten hervor.
- Court unfreezing of corporate rights in Kyivstar removes significant operational restriction
- Ability to accelerate business partnerships in Ukraine restored
- Enhanced opportunity to attract international investors to Kyivstar
- Improved market assessment potential for Ukrainian operations
- None.
Insights
The unfreezing of VEON's corporate rights in Kyivstar and other Ukrainian subsidiaries represents a significant legal and operational milestone. The Shevchenkivskyi District Court's decision removes a major regulatory overhang that had restricted VEON's control over its Ukrainian assets since October 2023. This ruling has three key implications: 1) It reaffirms VEON's compliance with sanctions regulations and validates their separation from any sanctioned entities, 2) It strengthens Ukraine's credibility in protecting foreign investor rights during wartime and 3) It enables VEON to pursue strategic initiatives with Kyivstar, including potential partnerships or investment structures.
The court's decision establishes a positive precedent for international businesses operating in Ukraine, demonstrating the country's commitment to maintaining a stable legal framework for foreign investors despite the ongoing conflict. This could have broader implications for other companies considering investments in Ukraine's reconstruction efforts.
This development unlocks significant shareholder value by removing operational constraints on VEON's most strategic asset. Kyivstar, as Ukraine's leading telecom operator, represents a substantial portion of VEON's portfolio. The unfreezing enables VEON to: 1) Accelerate business partnerships and strategic initiatives, 2) Potentially attract new investors through various corporate structures and 3) Position itself as a unique investment vehicle for exposure to Ukraine's reconstruction and growth potential in U.S. markets.
The timing is particularly relevant as Ukraine's eventual reconstruction could drive significant telecommunications infrastructure development. With restored corporate rights, VEON can now fully capitalize on these opportunities and potentially explore value-unlocking transactions that were previously restricted.
Amsterdam, Dubai and Kyiv, December 3, 2024 – VEON Ltd. (Nasdaq: VEON), a global digital operator (“VEON”), shares the following open letter by its Group CEO Kaan Terzioglu to VEON investors on the recent decision by the Shevchenkivskyi District Court of Kyiv, unfreezing VEON's corporate rights on Kyivstar and VEON's other Ukrainian subsidiaries (Ukraine Tower Company, KyivstarTech and Helsi).
Dear Valued VEON Investor,
On Friday, we reached another milestone in VEON’s growth journey as the Shevchenkivskyi District Court of Kyiv lifted the freezing of VEON’s corporate rights in Kyivstar and our other Ukrainian subsidiaries. This decision is the result of our steadfast commitment to connecting and rebuilding Ukraine every day, and of our relentless efforts since the freezing in October 2023, making the case that VEON and Kyivstar are pillars of Ukraine’s resilience and reconstruction, with no benefits flowing to any sanctioned persons. It demonstrates Ukraine’s commitment to the rule of law and to protecting the rights of international investors.
I would like to thank you for your confidence in VEON throughout this period. You have not only continued to believe in VEON’s growth story, but also supported us in our commitments to continue investing in Ukraine.
This positive decision encourages us further, and we do believe that Friday’s ruling is indeed a win-win for all. It is a win for VEON’s investors, as the court’s decision removes a source of concern that impacted how the markets assessed our potential for growth in one of our key countries of operation. It is a win for Kyivstar and for the people of Ukraine that we proudly serve, as it enables us to accelerate certain business partnerships. Most importantly, it is a win for Ukraine as it sends a positive message to the global investment community with regards to Ukraine’s business climate and commitment to the rule of law, increasing the country’s appeal as an investment destination.
With the unfreezing of our corporate rights, we now look forward to further value creation in Kyivstar, including exploring the ways in which VEON can play a greater role in bringing international and local investors into this significant asset in our portfolio, in line with VEON’s previously disclosed strategic direction. As one of our shareholders has aptly put it, Kyivstar, through VEON’s Nasdaq listing, is “the sole Ukrainian investment theme on the U.S. [listed] equity market,” and we very much see this as a significant opportunity that benefits all stakeholders.
Our press release on the court ruling is available on VEON’s website: https://www.veon.com/newsroom/press-releases/veon-welcomes-unfreezing-of-its-corporate-rights-in-kyivstar-supporting-ukraines-recovery-and-resilience.
On behalf of VEON, thank you for your support and confidence, and we look forward to sharing further updates as they develop.
Best Regards,
Kaan Terzioglu
VEON Group CEO
About VEON
VEON is a NASDAQ-listed digital operator that provides connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than
Disclaimer
This letter 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 commercial and investment plans and investment opportunities in Ukraine. 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, including the important factors discussed under the caption Risk Factors in VEON’s annual report on Form 20-F for the year ended 31 December 2023, which is on file with the U.S. Securities and Exchange Commission (SEC) and is available on the SEC website at www.sec.gov. The forward-looking statements contained in this letter speak only as of the date of this letter. 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. There can be no assurance that the initiatives referred to above will be successful.
FAQ
What did the Kyiv court decide regarding VEON's rights in Kyivstar?
How long were VEON's corporate rights in Kyivstar frozen?
What Ukrainian subsidiaries of VEON were affected by the court decision?
What are VEON's plans for Kyivstar after the unfreezing of rights?
