4 Jul 2018
Russian-backed, Amsterdam-headquartered VEON has submitted an offer to take direct ownership of its Pakistan and Bangladesh mobile operating units currently held via the group’s majority-owned Egypt-based subsidiary Global Telecom Holding (GTH). VEON, listed on the US NASDAQ and Euronext Amsterdam stock markets, said in a release that the plan is aimed at simplifying its group structure and enhancing shareholder value, whilst increasing its operational focus on emerging markets, as this week it also announced a deal to divest its share in Italy’s Wind Tre.
VEON’s USD2.55 billion offer to acquire Banglalink (Bangladesh) and Pakistani cellco Jazz (including Mobilink/Warid) from GTH was submitted on 2 July and is subject to approval of GTH shareholders at an extraordinary general meeting and certain regulatory approvals. Completion of the transaction is expected in Q4 2018. VEON owns 57.7% of GTH and already consolidates the results of Jazz and Banglalink, plus another GTH subsidiary, Djezzy (Algeria), which will continue to be held via the Egyptian sub-division.