VEON Acknowledges Shareholder Engagement and Growth Commitment
VEON Ltd. (Nasdaq: VEON; Euronext Amsterdam: VEON), a prominent global digital operator, has publicly confirmed its reception of a letter from Shah Capital, a long-standing shareholder owning approximately 7% of the company's shares. This letter, referred to as the Shah Letter, presents valuable perspectives on VEON's current market valuation and proposes a strategic seven-step roadmap aimed at enhancing shareholder value.
Strategic Engagement with Shareholders
The letter has been carefully reviewed by VEON’s Board of Directors and the Management team. VEON expresses gratitude to Shah Capital for their ongoing support and insights, stating their eagerness to address the key points raised in the Shah Letter. This includes an initial response from the VEON Board that was shared with Shah Capital earlier today, as well as plans for ongoing dialogue to ensure continuous engagement.
Key Highlights from the Board's Response
VEON's management has highlighted several critical points in its response to the Shah Letter, acknowledging the substantial growth the company has experienced and Shah Capital’s recognition of this progress. Over the past two years, VEON's share value has seen significant improvement, but the company agrees that there's potential for further enhancement as it aims to position itself as a premier choice for investors looking to invest in dynamic frontier markets.
Continued Development and Market Positioning
Amidst various market dynamics, VEON remains committed to engaging extensively with investors, particularly in Europe and the United States. The company has made noteworthy strides, including the recent inclusion of VEON bonds in JP Morgan’s Emerging Market Corporate Indices (CEMBI, JACI, and JSEG). Efforts are ongoing to broaden market coverage and improve liquidity. Additionally, VEON has received an upgraded ESG rating of AA from MSCI, which positions the company as a leader within its industry.
Strategic Optimizations
As part of its strategic objectives announced during the Capital Markets Day, VEON is actively evaluating options to crystallize the value of its assets. This may involve initial public offerings of certain business units, aligning timing and structure to maximize shareholder returns. The company emphasizes that sustaining this growth trajectory is essential for its long-term plans.
Driving Innovation through Digital Transformation
VEON’s Digital Operator (DO1440) strategy is a crucial element driving its growth. This approach focuses on enhancing the digital services portfolio, bolstering customer engagement, and maximizing value generation across various sectors. As the DO1440 strategy evolves, VEON has also initiated an AI1440 focus, further diversifying its service offerings, which include digital finance, healthcare, entertainment, education, and enterprise services.
Strengthening Governance and Operational Presence
Moreover, VEON is dedicated to continually refining its governance structure, implementing optimizations that foster efficiency, innovation, and shareholder value. Key initiatives include relocating its headquarters to Dubai for better market proximity and the initiation of a process to consolidate its trading activities on the Nasdaq Stock Exchange while planning a delisting from Euronext Amsterdam.
Commitment to Sustainable Growth
VEON is unwavering in its focus on sustainable growth and the creation of long-term value for all stakeholders. The company is actively implementing its strategic initiatives which encompass enhancing its strong operational outlook, optimizing its capital structure, and maintaining a disciplined approach towards capital allocation. In due course, VEON is considering the recommendations from the Shah Letter that include enhancing market valuation, capital returns, and improved communications with the investment community.
Open Dialogue with Shareholders
VEON values the constructive engagement from its shareholders and is committed to maintaining an open line of communication with the investment community to unlock its full potential. The company recognizes that collaboration and transparency are vital components in driving shareholder value and achieving strategic goals.
About VEON
VEON is a digital operator offering converged connectivity and a wide array of digital services to nearly 160 million customers across six countries, which collectively host over 7% of the global population. Through technology-driven solutions, VEON is dedicated to transforming lives, empowering individuals, and stimulating economic growth. The company is publicly traded on Nasdaq and Euronext.
Contact Information
For further inquiries, please reach out to Hande Asik, Group Director of Strategy and Communication, at pr@veon.com.
Frequently Asked Questions
What is VEON's response to Shah Capital's suggestions?
VEON has carefully reviewed the suggestions provided in the Shah Letter and expresses a commitment to addressing these points with an ongoing dialogue.
How has VEON’s stock performed recently?
VEON's share value has more than doubled in the past two years, showing a strong recovery despite market challenges.
What strategies is VEON implementing for growth?
VEON is focusing on enhancing its digital services portfolio, pursuing strategic partnerships, and evaluating potential initial public offerings of select subsidiaries.
What recognition has VEON received recently?
The company has been upgraded to an AA ESG rating by MSCI, highlighting its commitment to environmental, social, and governance standards.
How does VEON plan to communicate with its shareholders?
VEON is committed to maintaining open lines of communication with shareholders through regular updates and dialogues to ensure transparency.
