VEON Initiates $30 Million Share Buyback to Boost Value
VEON Launches a Significant Share Buyback Program
VEON Ltd. (Nasdaq: VEON), a leading global digital operator, is taking a strategic step by initiating the first phase of its share buyback program, amounting to $30 million. This announcement marks an exciting phase in the company’s ongoing efforts to enhance shareholder value and bolster its financial standing.
Details of the Share Buyback Plan
This initial $30 million phase is a piece of VEON’s broader strategy designed to execute a total share repurchase plan of up to $100 million. The buybacks will be managed on the open market and executed through a 10b5-1 plan with a licensed broker-dealer, ensuring compliance with relevant market regulations.
The rationale behind this initiative, as articulated by VEON, rests on the belief that its American Depositary Shares (ADS) are presently undervalued compared to the company's operational performance and prospects. By repurchasing ADSs, VEON aims to optimize the value delivered to shareholders.
CEO's Perspective on Growth and Value
Kaan Terzioglu, the CEO of VEON Group, shared his insights on this decision, stating, "This share buyback program showcases our unwavering confidence in VEON’s growth direction and the significant value we bring to our shareholders. It reflects our dedication to enhancing long-term value while carefully managing our capital allocation strategies."
Future Phases of the Buyback Program
The company has indicated that future buyback phases will also consider various factors, including market conditions and liquidity. These considerations were crucial in approving the first $30 million segment of the buyback program, with subsequent phases expected to follow the same structured approach up to the authorized limit of $100 million.
VEON: A Digital Operator Transforming Lives
VEON stands out as a Nasdaq-listed digital operator that provides comprehensive connectivity and digital services to nearly 160 million users across six countries, representing more than 7% of the global population. Through its innovation and technology, VEON is dedicated to enhancing the lives of individuals and fostering economic growth.
Expectations Moving Forward
With these strategic moves, VEON aims to reinforce its position in the competitive digital landscape, focusing on delivering outstanding services to its vast customer base. As the company progresses with its buyback program, stakeholders will be watching closely for updates on the implementation and impact of these actions on the overall market performance of VEON.
Frequently Asked Questions
What is the purpose of VEON's share buyback program?
The share buyback program aims to enhance shareholder value by repurchasing undervalued shares and strengthening the company’s financial position.
How much is the initial phase of the buyback program?
The initial phase of the buyback program is valued at $30 million.
What is the total budget for VEON's share buyback program?
VEON plans to allocate up to $100 million for its total share buyback program.
Who commented on the share buyback program?
Kaan Terzioglu, the CEO of VEON Group, provided insights and expressed confidence in the company's growth through this program.
How will the buyback program be conducted?
The buybacks will occur on the open market through a structured plan in compliance with legal regulations and market conditions.
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