VEON would sell Russian division, report claims

26 Feb 2019

NASDAQ and Euronext Amsterdam-listed multinational telecoms operator VEON reportedly aims to divest its Beeline-branded Russian division – the group’s largest revenue earner, accounting for 51% of 2018 turnover – according to EconomicInform based on information from Bloomberg. Anonymous insiders were cited as claiming that Beeline Russia – incorporating nationwide mobile services and an extensive fibre broadband network – could fetch a higher price than VEON’s total market value, with exploratory talks on a potential sale reportedly being held last year with state-backed national fixed line giant Rostelecom. According to the unnamed sources, the VEON-Rostelecom discussions ended without an agreement because VEON expected more money than Rostelecom was willing to pay (whilst the unit was previously valued by Sova Capital at around USD8.5 billion including debt, the report adds).

Russia, VEON