Veon, a global digital operator providing converged connectivity and online services, reports that Russian regulatory bodies have approved the proposed sale of its Russian operations.
The proposed sale of VEON's Russian operations to certain senior members of PJSC VimpelCom's management, led by its current CEO Alexander Torbakhov, received permission from the Sub-Commission of the Government Commission for Control over Foreign Investments in the Russian Federation on February 07, 2023, subject to certain conditions.
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Kaan Terzioglu, CEO of Veon Group, said: "We believe the sale of our Russian business represents the optimal solution for Veon, its Russian operations, and all stakeholders, including customers, shareholders, creditors, and employees both in and outside of Russia."
"We are pleased to have reached this significant milestone in the transaction, which is expected to be accretive to equity, reduce VEON's debt, and improve its credit profile."
Veon appointed Torbakhov to head VimpelCom, which operates as Beeline, almost three years ago, when he replaced Vasyl Latsanych. Sberbank is the largest bank in Russia, central and eastern Europe. Before taking on the role of deputy chairman and CEO of Sberbank, the Savings Bank of the Russian Federation, Torbakhov served as the CEO of VimpelCom for more than a decade.
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Veon will be considerably smaller after selling its Russian division. After June, Veon will be half of its original size. Earlier, 52% of Veon's business came from Russia, while another 13% came from Ukraine, according to 2021 statistics.
The Russian Federal Antimonopoly Service has already authorized the transaction. Therefore, it is anticipated that the remaining closing conditions will be satisfied and that, as previously communicated, the transaction will be completed on or before June 01, 2023.