AMSTERDAM, Dec. 1, 2021 /PRNewswire/ -- VEON Ltd. (NASDAQ:
VEON) (Euronext Amsterdam: VEON), a leading global provider of
connectivity and internet services, today announces the successful
conclusion of the transaction for the sale of its Russian tower
assets to Service-Telecom.
Following VEON's entry into an agreement to sell its mobile
network towers in Russia to
Service-Telecom as announced on 6 September
2021, regulatory approvals have been obtained by the parties
and this transaction has now successfully completed. The
transaction involves the sale of 100% of National Tower Company
("NTC"), a subsidiary of VEON, which operates a portfolio of
approximately 15,400 mobile network towers in Russia.
The purchase price for the transaction of RUB70.65bn (USD957mn equivalent) corresponds to an EV/EBITDA
multiple of 11.7x based on the projected EBITDA of National Tower
Company post-completion. VEON has received a payment of
RUB64.4bn (USD872mn equivalent) at closing and the balance
of certain deferred amounts will be due and payable over the next
three years. The proceeds from this transaction will be used to
reduce Group external debt.
The conclusion of this transaction paves the way for the
establishment of a long-term partnership pursuant to a master tower
agreement that has been entered into between PJSC Vimpelcom and
Service-Telecom. In connection with the transaction, J.P.
Morgan and Allen & Overy acted as financial and legal advisors,
respectively, to a wholly owned subsidiary of VEON. Aspring Capital
and Freshfields Bruckhaus Deringer acted as financial and legal
advisors to Service-Telecom, respectively.
Kaan Terzioglu, VEON's CEO, said:
"I am encouraged by the successful conclusion of this transaction
and look forward to building our partnership with Service-Telecom.
This transaction unlocks the value of our infrastructure assets in
Russia and allows the release of
capital to further optimise VEON's balance sheet while at the same
time achieving more financial flexibility for the group".
Service-Telecom CEO Nikolay
Berdin noted: "Following a highly competitive tender
process, we completed this historical, first-ever, tower
transaction in the Russian market. This highlighted the financial
capabilities of the group and demonstrated the expertise of the
Service-Telecom team both in its ability to manage the tower
business and M&A. By entering this transaction with VimpelCom,
we'll continue to successfully run the business to develop a
national mobile network infrastructure that matches the country's
ambitions."
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, the potential benefits of the
transaction 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. Furthermore, elements of this release contain
or may contain, "inside information" as defined under the Market
Abuse Regulation (EU) No. 596/2014.
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