VEON Approves Launch of the Initial USD 30 Million Phase of its Share Buyback Program
VEON (Nasdaq: VEON) has announced the launch of the first phase of its share buyback program, targeting up to USD 30 million in American Depositary Shares (ADS). This initial phase is part of a larger USD 100 million buyback plan, to be executed on the open market through a 10b5-1 plan with a registered broker-dealer, complying with Rule 10b-18.
The company believes its ADSs are currently undervalued compared to its operational performance and strategic potential. The buyback aims to optimize shareholder value and strengthen VEON's financial position. The timing and specifics of subsequent phases will depend on liquidity considerations, market conditions, and legal requirements.
VEON (Nasdaq: VEON) ha annunciato il lancio della prima fase del suo programma di riacquisto di azioni, mirato fino a 30 milioni di USD in American Depositary Shares (ADS). Questa fase iniziale fa parte di un piano di riacquisto più ampio da 100 milioni di USD, da eseguire sul mercato aperto attraverso un piano 10b5-1 con un broker-dealer registrato, in conformità con la Regola 10b-18.
L'azienda crede che i suoi ADS siano attualmente sottovalutati rispetto alle sue performance operative e al potenziale strategico. Il riacquisto mira a ottimizzare il valore per gli azionisti e a rafforzare la posizione finanziaria di VEON. La tempistica e i dettagli delle fasi successive dipenderanno da considerazioni di liquidità, condizioni di mercato e requisiti legali.
VEON (Nasdaq: VEON) ha anunciado el lanzamiento de la primera fase de su programa de recompra de acciones, con un objetivo de hasta 30 millones de USD en American Depositary Shares (ADS). Esta fase inicial es parte de un plan de recompra más grande de 100 millones de USD, que se ejecutará en el mercado abierto a través de un plan 10b5-1 con un corredor registrado, cumpliendo con la Regla 10b-18.
La empresa considera que sus ADS están actualmente subvaloradas en comparación con su rendimiento operativo y potencial estratégico. La recompra tiene como objetivo optimizar el valor para los accionistas y fortalecer la posición financiera de VEON. La sincronización y los detalles de las fases posteriores dependerán de consideraciones de liquidez, condiciones del mercado y requisitos legales.
VEON (Nasdaq: VEON)은 최대 3천만 달러의 미국 예탁주식(ADS)에 대해 주식 매입 프로그램의 첫 번째 단계 시작을 발표했습니다. 이 초기 단계는 1억 달러의 더 큰 매입 계획의 일환으로, 등록된 중개인을 통해 10b5-1 계획에 따라 공개 시장에서 실행될 예정이며, 규칙 10b-18을 준수합니다.
회사는 현재 자사의 ADS가 운영 성과와 전략적 잠재력에 비해 과소평가되어 있다고 믿고 있습니다. 매입은 주주 가치를 최적화하고 VEON의 재무 상태를 강화하는 것을 목표로 합니다. 이후 단계의 타이밍과 세부사항은 유동성 고려사항, 시장 상황 및 법적 요구 사항에 따라 달라질 것입니다.
VEON (Nasdaq: VEON) a annoncé le lancement de la première phase de son programme de rachat d'actions, visant jusqu'à 30 millions USD en American Depositary Shares (ADS). Cette phase initiale fait partie d'un plan de rachat plus vaste de 100 millions USD, qui sera exécuté sur le marché libre par le biais d'un plan 10b5-1 avec un courtier inscrit, conformément à la règle 10b-18.
L'entreprise considère que ses ADS sont actuellement sous-évaluées par rapport à ses performances opérationnelles et son potentiel stratégique. Le rachat vise à optimiser la valeur pour les actionnaires et à renforcer la position financière de VEON. Le calendrier et les détails des phases suivantes dépendront de considérations de liquidité, des conditions du marché et des exigences légales.
VEON (Nasdaq: VEON) hat den Start der ersten Phase seines Aktienrückkaufprogramms bekannt gegeben, das bis zu 30 Millionen USD in American Depositary Shares (ADS) anvisiert. Diese erste Phase ist Teil eines größeren Rückkaufplans über 100 Millionen USD, der auf dem offenen Markt über einen 10b5-1-Plan mit einem registrierten Broker-Dealer durchgeführt wird, unter Einhaltung der Regel 10b-18.
Das Unternehmen ist der Auffassung, dass seine ADS derzeit im Vergleich zu seiner betrieblichen Leistung und strategischen Potenzial unterbewertet sind. Mit dem Rückkauf soll der Wert für die Aktionäre optimiert und die finanzielle Position von VEON gestärkt werden. Der Zeitpunkt und die Einzelheiten der nachfolgenden Phasen hängen von Liquiditätsüberlegungen, Marktbedingungen und gesetzlichen Anforderungen ab.
- Announcement of USD 30 million initial share buyback phase
- Part of larger USD 100 million buyback program
- Company views its shares as undervalued
- Strategic initiative to enhance shareholder value
- None.
Insights
The launch of VEON's
The implementation through a 10b5-1 plan provides a structured framework for execution while ensuring regulatory compliance. The company's assertion of stock undervaluation appears reasonable given their operational performance and the buyback could provide price support while enhancing earnings per share through share count reduction. The phased approach demonstrates prudent capital management, allowing flexibility to adjust based on market conditions and liquidity requirements.
The timing and structure of this buyback are strategically significant. By executing the program in phases, starting with
The structured approach through Rule 10b-18 compliance provides a transparent framework for execution, which should help maintain market stability during the buyback process. The emphasis on liquidity considerations and market conditions in determining subsequent phases suggests a well-thought-out strategy that prioritizes long-term shareholder value creation while maintaining financial prudence.
Dubai and Amsterdam, 9 December 2024: VEON Ltd. (Nasdaq: VEON), a global digital operator (“VEON” or the “Company”), announces that its Board of Directors has approved the commencement of the first phase of its previously announced share buyback program with respect to the Company’s American Depositary Shares (“ADS”). This first phase of the buyback will be in the amount of up to USD 30 million.
This USD 30 million first phase is part of VEON’s larger plan to execute a share buyback program of up to USD 100 million. The buybacks will be conducted on the open market pursuant to a 10b5-1 plan signed with a registered broker-dealer, and in compliance with Rule 10b-18.
As stated in VEON’s announcement on 1 August 2024, the Company believes that its ADSs are undervalued relative to its operational performance and strategic potential. By repurchasing ADSs, VEON aims to optimize shareholder value and strengthen its financial position for future opportunities.
Kaan Terzioglu, CEO of VEON Group, commented: “Our decision to initiate this share buyback program reflects the confidence we have in VEON’s growth trajectory and the value it delivers to shareholders. This program underscores our commitment to delivering long-term value while maintaining a disciplined approach to capital allocation.”
As noted in the Company’s 1 August 2024 announcement, the decisions on the timing and the specifics of the buybacks are subject to liquidity considerations, market conditions, applicable legal requirements, and other factors. Such factors have been taken into account in the approval process of the first USD 30 million phase of the program; and subsequent phases are expected to be carried out in the same manner, up to the authorized USD 100 million amount.
About VEON
VEON is a Nasdaq-listed digital operator that provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than
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 initiation and continuation of its buyback program. 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. There can be no assurance that the initiatives referred to above will be successful.
Contact Information
Hande Asik
Group Director of Communications
pr@veon.com
Faisal Ghori
Group Director of Investor Relations
ir@veon.com
FAQ
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