VEON Completes the Sale of Its Stake in TNS+ in Line with Asset-Light Strategy
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.
VEON ha completato la vendita della sua partecipazione del 49% nel fornitore di servizi di telecomunicazioni all'ingrosso kazako, TNS+ LLP, al suo partner di joint venture, il gruppo DAR. La vendita è stata completata per un corrispettivo totale di 137,5 milioni di USD. Dopo la vendita, Beeline Kazakhstan continuerà a offrire i suoi servizi, con la continuità aziendale garantita da contratti commerciali a lungo termine con TNS+.
Il CEO di VEON, Kaan Terzioglu, ha sottolineato che questa vendita consente a Beeline Kazakhstan di concentrarsi sulla costruzione del proprio portafoglio di servizi per consumatori e imprese connessi, mantenendo al contempo l'accesso all'affidabile infrastruttura all'ingrosso di TNS+. Beeline Kazakhstan offre servizi digitali come Simply, Izi, Hitter e BeeTV, ed è coinvolta nello sviluppo del modello linguistico AI in lingua locale del Kazakistan.
Alidar Utemuratov, CEO e fondatore del gruppo DAR, ha dichiarato che la consolidazione della proprietà di TNS+ riflette la loro fiducia nel Kazakistan come paese chiave per il transito del traffico dati tra Europa e Asia. DAR prevede di espandersi in nuove geografie e di introdurre prodotti digitali all'avanguardia, mantenendo al contempo la leadership di TNS+ nel transito dei dati.
VEON ha completado la venta de su participación del 49% en el proveedor de servicios de infraestructura de telecomunicaciones mayoristas de Kazajistán, TNS+ LLP, a su socio de la JV, el grupo DAR. La venta se completó por un consideración total de 137,5 millones de USD. Tras la venta, Beeline Kazajistán continuará ofreciendo sus servicios, asegurando la continuidad empresarial a través de contratos comerciales a largo plazo con TNS+.
El CEO del Grupo VEON, Kaan Terzioglu, enfatizó que esta venta permite a Beeline Kazajistán centrarse en construir su portafolio de servicios conectados para consumidores y empresas, al tiempo que mantiene el acceso a la sólida infraestructura mayorista de TNS+. Beeline Kazajistán ofrece servicios digitales como Simply, Izi, Hitter y BeeTV, y participa en el desarrollo del modelo de lenguaje de IA en idioma local de Kazajistán.
Alidar Utemuratov, CEO del Grupo y fundador de DAR, afirmó que la consolidación de la propiedad de TNS+ refleja su confianza en Kazajistán como un país clave para el tránsito de tráfico de datos entre Europa y Asia. DAR planea expandirse a nuevas geografías e introducir productos digitales de vanguardia, manteniendo al mismo tiempo el liderazgo de TNS+ en el tránsito de datos.
VEON은 카자흐스탄 도매 통신 인프라 서비스 제공업체인 TNS+ LLP의 49% 지분 매각을 완료했습니다. 이번 매각은 총 1억 3천7백50만 달러에 이뤄졌습니다. 매각 후 Beeline 카자흐스탄은 TNS+와의 장기 상업 계약으로 사업 지속성을 확보하며 계속 서비스를 제공할 것입니다.
VEON의 CEO인 Kaan Terzioglu는 이번 매각이 Beeline 카자흐스탄이 연결된 소비자 및 기업 서비스 포트폴리오 구축에 집중할 수 있게 하며, TNS+의 강력한 도매 인프라에 대한 접근을 유지할 수 있게 해준다고 강조했습니다. Beeline 카자흐스탄은 Simply, Izi, Hitter 및 BeeTV와 같은 디지털 서비스를 제공하고 있으며, 카자흐스탄의 현지 언어 AI 대형 언어 모델 개발에 참여하고 있습니다.
Alidar Utemuratov, DAR의 CEO 및 설립자는 TNS+의 소유권 통합이 카자흐스탄을 유럽과 아시아 간 데이터 트래픽 전송의 주요 국가로 인식하고 있다는 자신감을 반영한다고 밝혔습니다. DAR은 새로운 지역으로 확장하고 최첨단 디지털 제품을 도입할 계획이며, TNS+의 데이터 전송 분야에서의 리더십을 유지할 것입니다.
VEON a achevé la vente de sa participation de 49% dans le fournisseur de services d'infrastructure télécommunications de gros kazakh, TNS+ LLP, à son partenaire de coentreprise, le groupe DAR. La vente a été réalisée pour une considération totale de 137,5 millions USD. Après la vente, Beeline Kazakhstan continuera à offrir ses services, avec une continuité commerciale sécurisée par des contrats commerciaux à long terme avec TNS+.
Le CEO du Groupe VEON, Kaan Terzioglu, a souligné que cette vente permet à Beeline Kazakhstan de se concentrer sur le développement de son portefeuille de services connectés pour les consommateurs et les entreprises tout en maintenant l'accès à l'infrastructure de gros robuste de TNS+. Beeline Kazakhstan propose des services numériques tels que Simply, Izi, Hitter et BeeTV, et participe au développement du modèle de langage IA en langue locale du Kazakhstan.
Alidar Utemuratov, CEO et fondateur du groupe DAR, a déclaré que la consolidation de la propriété de TNS+ reflète leur confiance dans le Kazakhstan en tant que pays clé pour le transit du trafic de données entre l'Europe et l'Asie. DAR prévoit de s'étendre dans de nouvelles géographies et d'introduire des produits numériques de pointe tout en maintenant la position de leader de TNS+ dans le transit des données.
VEON hat den Verkauf seines 49%-Anteils am kasachischen Anbieter für Großhandels-Telekommunikationsinfrastrukturdienste, TNS+ LLP, an seinen Gemeinschaftsunternehmen-Partner, die DAR-Gruppe, abgeschlossen. Der Verkauf wurde für eine Gesamtsumme von 137,5 Millionen USD abgeschlossen. Nach dem Verkauf wird Beeline Kasachstan weiterhin seine Dienste anbieten, wobei die Geschäftskontinuität durch langfristige kommerzielle Verträge mit TNS+ sichergestellt wird.
Der CEO der VEON-Gruppe, Kaan Terzioglu, betonte, dass dieser Verkauf es Beeline Kasachstan ermöglicht, sich auf den Aufbau seines Portfolios an verbundenen Verbraucher- und Unternehmensdiensten zu konzentrieren und gleichzeitig den Zugang zur robusten Großhandelsinfrastruktur von TNS+ aufrechtzuerhalten. Beeline Kasachstan bietet digitale Dienstleistungen wie Simply, Izi, Hitter und BeeTV an und ist an der Entwicklung des KI-Sprachmodells in Landessprache Kasachstans beteiligt.
Alidar Utemuratov, CEO und Gründer der DAR-Gruppe, erklärte, dass die Konsolidierung des Eigentums von TNS+ ihr Vertrauen in Kasachstan als ein Schlüsselstaat für den Datentransitverkehr zwischen Europa und Asien widerspiegelt. DAR plant, in neue geografische Märkte zu expandieren und innovative digitale Produkte einzuführen, während gleichzeitig die Führungsposition von TNS+ im Datenverkehr aufrechterhalten wird.
- 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
- Divestment of infrastructure asset may limit future control over network quality and expansion
Insights
The sale of VEON's 49% stake in TNS+ for
- It strengthens VEON's balance sheet, providing additional liquidity.
- The long-term commercial contracts with TNS+ ensure business continuity for Beeline Kazakhstan, maintaining access to critical infrastructure without the burden of ownership.
- This move allows VEON to focus on its core digital operator business, particularly in developing AI-powered services and digital products in Kazakhstan.
The deal's structure, combining immediate and deferred consideration, suggests a well-negotiated exit that balances immediate cash needs with potential future value. For investors, this transaction demonstrates VEON's commitment to streamlining operations and focusing on high-growth digital services, which could lead to improved profitability and market positioning in the long term.
VEON's strategic shift towards becoming a "digital operator" is evident in this transaction. By divesting infrastructure assets while maintaining service agreements, VEON can allocate more resources to innovative digital services. Key points to consider:
- The focus on AI development, particularly the local-language large language model, positions VEON at the forefront of AI integration in telecommunications.
- Digital services like Simply, Izi, Hitter and BeeTV represent VEON's push into value-added services beyond traditional telecom offerings.
- This asset-light approach could accelerate VEON's digital transformation, potentially leading to higher margins and more agile service deployment.
For tech-savvy investors, this move signals VEON's transition from a traditional telco to a digital services provider, which could open up new revenue streams and market opportunities in the rapidly evolving digital economy.
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
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
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+?
How will the sale of TNS+ affect Beeline Kazakhstan's operations?
What digital services does Beeline Kazakhstan offer?
What is VEON's strategy following the sale of its stake in TNS+?
