VEON Completes the Sale of Its Stake in TNS+ in Line with Asset-Light Strategy

Rhea-AI Summary

VEON has completed the sale of its 49% stake in Kazakh wholesale telecommunications infrastructure services provider, TNS+ LLP, to its JV partner, the DAR group of companies. The sale was completed for a total consideration of USD 137.5 million. Following the sale, Beeline Kazakhstan will continue to offer its services, with business continuity secured by long-term commercial contracts with TNS+.

VEON's Group CEO, Kaan Terzioglu, emphasized that this sale allows Beeline Kazakhstan to focus on building its portfolio of connected consumer and enterprise services while maintaining access to TNS+'s robust wholesale infrastructure. Beeline Kazakhstan offers digital services such as Simply, Izi, Hitter, and BeeTV, and is involved in developing Kazakhstan's local-language AI large language model.

Alidar Utemuratov, Group CEO and founder of DAR, stated that consolidating ownership of TNS+ reflects their confidence in Kazakhstan as a key country for data traffic transit between Europe and Asia. DAR plans to expand into new geographies and introduce cutting-edge digital products while maintaining TNS+'s leadership in data transit.

Positive

• Sale of 49% stake in TNS+ for USD 137.5 million
• Long-term commercial contracts with TNS+ ensure business continuity for Beeline Kazakhstan
• Focus on building portfolio of connected consumer and enterprise services
• Involvement in developing Kazakhstan's local-language AI large language model

Negative

• Divestment of infrastructure asset may limit future control over network quality and expansion

News Market Reaction

-0.23%

1 alert

-0.23% News Effect

On the day this news was published, VEON declined 0.23%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Amsterdam, 30 September 2024: VEON Ltd. (Nasdaq: VEON, Euronext Amsterdam: VEON), a global digital operator (“VEON” or the “Company”), announces that it has completed the sale of its 49% stake in Kazakh wholesale telecommunications infrastructure services provider, TNS Plus LLP (“TNS+”), to its JV partner, the DAR group of companies, following the receipt of necessary regulatory approvals.

The sale was completed today for a total consideration to VEON (including deferred consideration) of USD 137.5 million. Following the sale, Beeline Kazakhstan will continue to offer an exceptional customer experience, with business continuity secured by long-term commercial contracts with TNS+ to continue providing its critical infrastructure to Beeline Kazakhstan.

“Completion of this sale enables Beeline Kazakhstan to continue to access the robust wholesale infrastructure offered by TNS+ while strengthening our Kazakh digital operator’s focus on building its portfolio of connected consumer and enterprise services. Beeline Kazakhstan offers exciting digital services such as Simply, Izi, Hitter and BeeTV, and is a key partner in developing Kazakhstan’s local-language AI large language model, which will power the development of new, locally relevant AI-powered tools in Kazakhstan. We are thrilled to deepen our services to the Kazakh economy in these areas” said Kaan Terzioglu, Group CEO of VEON. 

“Consolidating ownership of TNS+ reflects our strong confidence in Kazakhstan as a key country for data traffic transit between Europe and Asia. This move will also enable the company to execute its new global strategy by expanding into new geographies and introducing cutting-edge digital products. We will continue to invest in Kazakhstan's telecom infrastructure and provide high-quality services to our customers, while maintaining TNS+’s leadership in data transit,” said Alidar Utemuratov, Group CEO and founder of DAR.

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 and expectations for the development of AI in Kazakhstan. 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

Hande Asik
Group Director of Communication 
pr@veon.com

FAQ

What is the value of VEON's sale of its stake in TNS+?

VEON completed the sale of its 49% stake in TNS+ for a total consideration of USD 137.5 million.

How will the sale of TNS+ affect Beeline Kazakhstan's operations?

Beeline Kazakhstan will continue to offer its services with business continuity secured through long-term commercial contracts with TNS+ for critical infrastructure.

What digital services does Beeline Kazakhstan offer?

Beeline Kazakhstan offers digital services such as Simply, Izi, Hitter, and BeeTV.

What is VEON's strategy following the sale of its stake in TNS+?

VEON is focusing on an asset-light strategy, allowing Beeline Kazakhstan to concentrate on building its portfolio of connected consumer and enterprise services.