VEON announces sale of Georgian operations
VEON Ltd. announced the completion of the sale of its Georgian subsidiary, VEON Georgia LLC, to its former local partner for USD 45 million. This transaction reflects a 3.5x multiple on 2021 EBITDA (pre-IFRS16) and aligns with VEON's strategy to simplify its organizational structure. CEO Kaan Terzioglu highlighted the successful negotiations and emphasized the commitment of the new shareholder towards the ongoing digital transformation in Georgia. This move indicates VEON's continued focus on streamlining operations while fostering digital growth in the region.
- Sale of VEON Georgia LLC for USD 45 million enhances cash flow.
- Transaction reflects a healthy 3.5x EBITDA multiple, indicating strong valuation.
- Supports VEON's strategy to simplify its organizational structure.
- None.
AMSTERDAM, June 8, 2022 /PRNewswire/ -- VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator that provides mobile connectivity and services, today announces that it has completed an agreement for the sale of "VEON Georgia LLC", VEON's operating subsidiary in Georgia, to VEON's former local partner.
The sale of our Georgian operations is in line with VEON's long held ambition to simplify the Group's structure. The transaction value of USD 45 million equates to a 3.5x 2021 EBITDA multiple (pre-IFRS16).
Veon Group CEO Kaan Terzioglu said: "After a period of ongoing negotiations, we have successfully concluded an agreement for the sale of our operating subsidiary in Georgia to our former local partner. This transaction is another step towards streamlining our group operations. Beeline Georgia is a leader in terms of 4G penetration and digital services, thanks to its successful execution of VEON`s digital operator strategy. Company management and the new Georgian shareholder are committed to continue developing the success of the company and to support the digital transformation of the country."
Disclaimer
This press 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, expectations regarding management plans and the ability to successfully execute operating model, governance and development 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 date or to reflect the occurrence of unanticipated events.
About VEON
VEON is a NASDAQ and Euronext Amsterdam-listed global provider of connectivity and internet services. For more information visit: www.veon.com
Contact Information
VEON
Investor Relations
Nik Kershaw
ir@veon.com
+31 20 79 77 200
View original content:https://www.prnewswire.com/news-releases/veon-announces-sale-of-georgian-operations-301564210.html
SOURCE VEON Ltd
FAQ
What is the recent transaction involving VEON and its Georgian subsidiary?
How much was the sale of VEON Georgia LLC valued at?
What EBITDA multiple was achieved from the sale of VEON Georgia?
What is VEON's strategy behind selling its Georgian operations?
Who confirmed the completion of the sale of VEON Georgia?
