VEON completes the acquisition of minority shareholding in Pakistan Mobile Communications Limited (PMCL)

Rhea-AI Summary

VEON Ltd. has successfully completed the acquisition of a 15% minority stake in PMCL, Pakistan's top mobile operator Jazz, from the Dhabi Group for USD 273 million. This acquisition grants VEON full ownership of PMCL, simplifying governance of its Pakistani operations. The move is expected to enhance VEON's ability to leverage growth opportunities in the region, particularly through 4G and digital services. Co-CEO Sergi Herrero expressed enthusiasm for this development, indicating a commitment to further expanding services in Pakistan.

Positive

• Acquisition grants VEON 100% ownership of PMCL, enhancing governance.
• Expected future dividends from PMCL will benefit VEON financially.
• Positioning to capitalize on growth opportunities in the 4G and digital services market in Pakistan.

Negative

• None.

AMSTERDAM, March 22, 2021 /PRNewswire/ -- VEON Ltd. (NASDAQ: VEON) (Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services, announces that it has successfully concluded the acquisition of the 15% minority stake in PMCL, the operating company of Pakistan's leading mobile operator, Jazz, from the Dhabi Group for USD 273 million.

This transaction follows the Dhabi Group's exercise of its put option announced on 28 September 2020 and gives VEON 100% ownership of PMCL. This simplifies and streamlines the Group's governance over its Pakistani assets and enables VEON to capture the full value of this growing business, including future dividends paid by PMCL.

Sergi Herrero, VEON's co-CEO, said: "We are excited to conclude this transaction and take full ownership of our business in Pakistan. Jazz has an abundance of growth opportunities as its customers embrace our market-leading 4G and digital services. We look forward to supporting the team at Jazz as they continue to develop these opportunities further.  I would also like to thank the Dhabi Group, which has been a strong partner to VEON in Pakistan."

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, expectations regarding the potential benefits of the transactions described above. 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.

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 

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SOURCE VEON Ltd

FAQ

What is VEON's recent acquisition involving PMCL?

VEON acquired a 15% minority stake in PMCL, the operating company of Pakistan's Jazz, from the Dhabi Group for USD 273 million, achieving 100% ownership.

How does the acquisition of PMCL impact VEON's operations?

The acquisition simplifies governance over its Pakistani assets and allows VEON to capture future dividends from PMCL.

What are VEON's plans for Jazz after acquiring full ownership?

VEON aims to support Jazz in expanding its 4G and digital service offerings to capitalize on growth opportunities.

When was the acquisition of PMCL finalized?

The acquisition was finalized on March 22, 2021.