VEON has announced the completion of the sale of part of its tower portfolio in Bangladesh to Summit Towers for approximately BDT 11 billion (around USD 100 million). This transaction involves 2,012 towers owned by VEON's subsidiary, Banglalink. Summit Towers, a subsidiary of Summit Communications Group, has acquired these towers.
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Transaction Details
Under the terms of the agreement, Banglalink will continue to utilise the tower infrastructure services for an initial period of 12 years, with potential extensions. VEON says this sale aligns with its strategy to transition into an asset-light digital operator, allowing Banglalink to concentrate on providing digital services tailored to the local market.
According to VEON, this sale represents a significant step in realising the value of infrastructure assets in Bangladesh. It enables Banglalink to focus on delivering digital services while maintaining access to necessary infrastructure.
Stakeholder Comments
"Over the past year and a half, we have successfully doubled our network capacity and extended coverage nationwide, prioritising widespread 4G accessibility for all. This strategic expansion has significantly enhanced the quality of services offered to the people of Bangladesh. Our collaboration with Summit Towers allows us to take the next step in the efficient management of infrastructure resources in line with our asset-light strategy. This will enable us to focus more on our services and digital innovation such as Toffee and MyBL," Banglalink said.
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Commenting on the transaction, Summit Communications said, "Acquiring the ownership of the towers in this deal adds to our portfolio of 4,500 towers in the Bangladesh market. This, coupled with a fiber optic network spanning over 55,000 km and the upcoming submarine cable, will position Summit Communications Group as the country's primary end-to-end digital infrastructure provider, fulfilling a dream set over a decade ago."
The proceeds from the deal will primarily be utilised to meet Banglalink's financial obligations and drive cost efficiencies, facilitating the company's digital expansion efforts.
VEON and Banglalink will reportedly continue to explore collaborative opportunities related to Banglalink's remaining tower portfolio, consistent with VEON Group's asset-light strategy.
