VEON Welcomes Letter from its Shareholder Shah Capital, Reiterates Commitment to Shareholder Value Creation
VEON (Nasdaq: VEON; Euronext Amsterdam: VEON) has received a letter from Shah Capital, a 7% shareholder, outlining views on VEON's valuation and suggesting a seven-step strategic roadmap to enhance shareholder value. VEON's Board and Management have reviewed the letter and appreciate Shah Capital's insights and support.
While VEON's share value has more than doubled over the past 2 years, the company acknowledges potential for further improvement. VEON highlights strong investor engagement, recent inclusion in JP Morgan's EM Corporate Indices, and an upgraded MSCI ESG rating of AA. The company is evaluating options to crystallize business value, including potential IPOs of some companies.
VEON's Digital Operator (DO1440) strategy, now complemented by AI1440 focus, drives growth in digital services. The company plans to move headquarters to Dubai and consolidate trading on Nasdaq Stock Exchange. VEON remains committed to sustainable growth and creating long-term shareholder value.
VEON (Nasdaq: VEON; Euronext Amsterdam: VEON) ha ricevuto una lettera da Shah Capital, un azionista del 7%, che espone opinioni sulla valutazione di VEON e propone una roadmap strategica in sette punti per migliorare il valore per gli azionisti. Il Consiglio e la Direzione di VEON hanno esaminato la lettera e apprezzano le intuizioni e il supporto di Shah Capital.
Sebbene il valore delle azioni di VEON sia più che raddoppiato negli ultimi 2 anni, l'azienda riconosce il potenziale per ulteriori miglioramenti. VEON evidenzia un forte coinvolgimento degli investitori, l'inclusione recente negli Indici Corporate EM di JP Morgan e un rating ESG MSCI aggiornato di AA. L'azienda sta valutando opzioni per cristallizzare il valore aziendale, incluse potenziali IPO di alcune società.
La strategia dell'Operatore Digitale di VEON (DO1440), ora complementata dal focus su AI1440, guida la crescita nei servizi digitali. L'azienda prevede di trasferire la sede a Dubai e consolidare le negoziazioni sul Nasdaq Stock Exchange. VEON rimane impegnata in una crescita sostenibile e nella creazione di valore a lungo termine per gli azionisti.
VEON (Nasdaq: VEON; Euronext Amsterdam: VEON) ha recibido una carta de Shah Capital, un accionista del 7%, que detalla opiniones sobre la valoración de VEON y sugiere un plan estratégico de siete pasos para aumentar el valor para los accionistas. La Junta y la Dirección de VEON han revisado la carta y agradecen las ideas y el apoyo de Shah Capital.
Aunque el valor de las acciones de VEON se ha más que duplicado en los últimos 2 años, la empresa reconoce el potencial para mejorar aún más. VEON destaca su fuerte compromiso con los inversores, su reciente inclusión en los Índices Corporativos EM de JP Morgan y una mejora en su calificación ESG MSCI a AA. La empresa está evaluando opciones para cristalizar el valor empresarial, incluidas posibles OPI de algunas compañías.
La estrategia del Operador Digital de VEON (DO1440), ahora complementada por el enfoque en AI1440, impulsa el crecimiento en los servicios digitales. La empresa planea trasladar su sede a Dubái y consolidar la negociación en el Nasdaq Stock Exchange. VEON sigue comprometida con un crecimiento sostenible y la creación de valor a largo plazo para los accionistas.
VEON (Nasdaq: VEON; Euronext Amsterdam: VEON)는 7% 주주인 Shah Capital로부터 VEON의 평가에 대한 의견과 주주 가치를 높이기 위한 7단계 전략 로드맵을 제안하는 서신을 받았습니다. VEON의 이사회와 경영진은 서신을 검토하였으며 Shah Capital의 통찰력과 지원에 감사를 표합니다.
VEON의 주가는 지난 2년 동안 두 배 이상 올랐지만, 회사는 추가 개선의 잠재력을 인정하고 있습니다. VEON은 강력한 투자자 참여, JP Morgan의 EM 기업 지수에 최근 편입, AA로 향상된 MSCI ESG 등급을 강조합니다. 회사는 비즈니스 가치를 구체화하기 위한 옵션을 평가하고 있습니다, 일부 기업의 IPO 가능성을 포함하여.
VEON의 디지털 운영자(DO1440) 전략은 현재 AI1440 초점을 통해 디지털 서비스에서의 성장을 이끌고 있습니다. 회사는 본사를 두바이로 이전할 계획입니다 그리고 나스닥 증권 거래소에서 거래를 통합할 것입니다. VEON은 지속 가능한 성장과 장기적인 주주 가치를 창출하기 위해 헌신하고 있습니다.
VEON (Nasdaq: VEON; Euronext Amsterdam: VEON) a reçu une lettre de Shah Capital, un actionnaire à 7 %, présentant des opinions sur l'évaluation de VEON et suggérant une feuille de route stratégique en sept étapes pour améliorer la valeur pour les actionnaires. Le Conseil et la Direction de VEON ont examiné la lettre et apprécient les idées et le soutien de Shah Capital.
Bien que la valeur des actions de VEON ait plus que doublé au cours des 2 dernières années, l'entreprise reconnaît un potentiel d'amélioration supplémentaire. VEON met en avant un engagement fort des investisseurs, une inclusion récente dans les Indices Corporate EM de JP Morgan et une note ESG MSCI rehaussée à AA. L'entreprise est en train d'évaluer des options pour cristalliser la valeur de l'entreprise, y compris des introductions en bourse potentielles de certaines sociétés.
La stratégie de l'Opérateur Digital de VEON (DO1440), maintenant enrichie par l'accent sur AI1440, stimule la croissance des services numériques. L'entreprise prévoit de déplacer son siège à Dubaï et de consolider les échanges sur le Nasdaq Stock Exchange. VEON reste engagée envers une croissance durable et la création de valeur à long terme pour les actionnaires.
VEON (Nasdaq: VEON; Euronext Amsterdam: VEON) hat ein Schreiben von Shah Capital, einem 7% Anteilseigner, erhalten, in dem Ansichten zur Bewertung von VEON dargelegt und ein siebenstufiger strategischer Fahrplan zur Steigerung des Shareholder-Value vorgeschlagen wird. Der Vorstand und das Management von VEON haben das Schreiben geprüft und schätzen die Einsichten und die Unterstützung von Shah Capital.
Obwohl der Aktienwert von VEON in den letzten 2 Jahren mehr als verdoppelt wurde, erkennt das Unternehmen das Potenzial für weitere Verbesserungen an. VEON hebt das starke Engagement der Investoren, die jüngste Aufnahme in die EM Corporate Indices von JP Morgan und eine heraufgestufte MSCI ESG-Bewertung von AA hervor. Das Unternehmen prüft Optionen zur Realisierung des Unternehmenswerts, einschließlich potenzieller Börsengänge einiger Unternehmen.
Die Strategie des Digital Operators von VEON (DO1440), die nun durch den Fokus auf AI1440 ergänzt wird, fördert das Wachstum im digitalen Dienstleistungsbereich. Das Unternehmen plant, seinen Hauptsitz nach Dubai zu verlegen und den Handel an der Nasdaq Stock Exchange zu konsolidieren. VEON bleibt engagiert für nachhaltiges Wachstum und die Schaffung von langfristigem Shareholder-Value.
- Share value has more than doubled over the past 2 years
- Inclusion in JP Morgan's EM Corporate Indices (CEMBI, JACI, and JSEG)
- Upgraded MSCI ESG rating of AA, positioning among industry 'Leaders'
- Evaluating options to crystallize business value, including potential IPOs
- Digital Operator (DO1440) strategy driving growth in digital services portfolio
- Plans to move headquarters to Dubai for closer proximity to markets
- Consolidation of trading on Nasdaq Stock Exchange
- Current share price indicates potential for further improvement
- Planned delisting from Euronext Amsterdam
Insights
The letter from Shah Capital, a significant shareholder and VEON's response highlight several key points for investors. VEON's acknowledgment of undervaluation and commitment to shareholder value creation is positive. The company's share price doubling over two years indicates momentum, but there's still perceived upside potential.
Key strategic initiatives include:
- Potential IPOs of some VEON companies to crystallize value
- Evolving Digital Operator (DO1440) strategy, now complemented by AI1440 focus
- Expansion into digital services beyond traditional telecom
- Headquarters relocation to Dubai and consolidation of trading on Nasdaq
The inclusion of VEON bonds in JP Morgan's EM Corporate Indices and the upgraded MSCI ESG rating to AA are positive indicators for institutional investor interest. However, the lack of specific financial figures or concrete plans for capital returns in this communication limits its immediate impact on valuation.
VEON's response to Shah Capital's letter demonstrates a willingness to engage with shareholders and consider their input, which is a positive sign for corporate governance. The company's acknowledgment of the need for improved market valuation and commitment to exploring options for value crystallization shows responsiveness to shareholder concerns.
The planned move of headquarters to Dubai and the consolidation of trading on Nasdaq indicate efforts to streamline operations and potentially improve liquidity. These actions, along with the ongoing refinement of governance structures, suggest a proactive approach to enhancing shareholder value.
However, the response lacks specific timelines or concrete actions for implementing Shah Capital's suggestions, particularly regarding capital returns. Investors should monitor how VEON translates these commitments into actionable plans and measurable outcomes in the coming months.
Amsterdam and Dubai, 21 October 2024: VEON Ltd. (Nasdaq: VEON; Euronext Amsterdam: VEON), a global digital operator (“VEON” or the “Company”), acknowledges the receipt of a letter from Shah Capital (the “Shah Letter”), a valued long-term shareholder holding approximately
The letter, which outlines Shah Capital’s views on VEON’s current valuation and suggests a seven-step strategic roadmap to enhance shareholder value, has been reviewed by VEON’s Board of Directors and the Management team. VEON thanks Shah Capital for their continued support and feedback; and welcomes the opportunity to address the issues highlighted in the Shah Letter, initially with a response from VEON Board to Shah Capital shared earlier today, and also in the longer term through continued communication.
VEON appreciates Shah Capital’s insights and its recognition of VEON’s recent operational growth and the ongoing transformation of the business. While VEON’s share value has more than doubled over the past 2 years, the Company also shares Shah Capital’s assessment that its current share price indicates a potential for further improvement, as VEON positions itself as a leading opportunity for investors seeking growth in frontier markets.
VEON highlights the following points that have also been included in VEON Board’s response to the Shah Letter:
- Our engagement with investors, particularly across Europe and the US, remains strong. We are pleased to note the recent inclusion of VEON bonds in JP Morgan’s EM Corporate Indices (CEMBI, JACI, and JSEG). We continue to actively engage with various institutions to broaden coverage and enhance liquidity. Earlier this year, VEON also received an upgraded ESG rating of AA from MSCI1, positioning us among the “Leaders” in our industry.
- Consistent with our announced strategy at our Capital Markets Day, we are evaluating options to crystallize the value of our businesses and the assets which we own, including through initial public offerings of some of our companies when relevant. Our goal is to ensure that the structuring and timing of any potential transaction is aligned with maximizing VEON shareholder value.
- Our Digital Operator (DO1440) strategy has been the main driver of our growth, helping us focus on growing our digital services portfolio, and enhancing customer engagement and value generation. As our DO1440 strategy evolves – now complemented by our AI1440 focus – our companies also expand their value offering as leading providers of of digital finance, healthcare, entertainment, education, and enterprise services, including as providers of software, cloud, big data and AI-based solutions.
- We continuously refine our governance structure with optimizations that drive efficiency, innovation, and enhanced shareholder value. Recent examples in this regard include our plans to move our headquarters to Dubai to closer proximity to our markets, and the commencement of the process to consolidate our trading on Nasdaq Stock Exchange with our planned delisting from Euronext Amsterdam.
VEON remains committed to driving sustainable growth and creating long-term value for all shareholders. The Company is focused on continuing to execute its strategic initiatives, including advancing its strong operating outlook, optimizing its capital structure, and maintaining a disciplined approach to capital allocation. We are carefully considering the recommendations in the Shah Letter, which include suggestions on capital returns, improving market valuation, leveraging VEON’s strengths in emerging markets and further enhancing communication with the investment community.
As always, VEON appreciates the constructive engagement from its shareholders. Our Board and Management will continue to maintain an open dialogue with all our shareholders as we look to unlock VEON's full potential.
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 value creation 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 dates or to reflect the occurrence of unanticipated events.
Contact Information
Hande Asik
Group Director of Stratgy and Communication
pr@veon.com
1 The use by VEON of any MSCI ESG RESEARCH LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of VEON by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
FAQ
What is Shah Capital's stake in VEON?
How has VEON's share value performed in the last two years?
What is VEON's new ESG rating from MSCI?
Where is VEON planning to move its headquarters?
What is VEON's strategy for growth?
