VEON Launches a $35 Million Stock Buyback Initiative
Announcement marks the third phase of a larger buyback strategy
VEON Ltd. (Nasdaq: VEON), a globally recognized digital operator, has officially announced its plans to initiate the third phase of its share buyback program, aiming to repurchase up to $35 million of its American Depositary Shares (ADSs). This strategic move highlights the Company’s commitment to optimizing shareholder value amidst its ongoing financial growth.
The upcoming buyback phase follows the successful conclusion of the previous phase, which was executed earlier, resulting in the repurchase of approximately 1.43 million ADSs at an average price of $45.59 each. This proactive approach stems from a buyback program originally announced with a total budget of $100 million, showcasing VEON’s confidence in the intrinsic value of its shares.
Objectives Behind the Buyback
The decision to undertake these buybacks is rooted in the belief that the current market valuation of VEON’s ADSs does not accurately reflect its operational achievements and future strategic potential. By implementing the buyback program, the Company aims to enhance shareholder returns while simultaneously fortifying its overall financial standing.
Shareholder Benefits
Investors can see this initiative as a clear signal of VEON's dedication to its shareholders. The buybacks are not just a mechanism for returning value; they also aim to reduce the number of outstanding shares, which could potentially increase earnings per share (EPS) in the future. This approach not only aligns with shareholder interests but also positions VEON for financing flexibility and growth opportunities ahead.
Upcoming Financial Strategies
In conjunction with the buyback initiative, VEON is examining avenues for external financing through a potential private placement of bonds, referred to as the Notes. These bonds, which may have a maturity period of up to four years, are designed to support the Company’s strategic objectives and enhance its overall financial leverage.
This aspect of financial strategy is critical as it demonstrates VEON's commitment to capital planning and its efforts to engage with institutional investors. The preliminary discussions regarding this Notes offering are ongoing and represent a proactive approach to securing funding for future growth.
About VEON
VEON is a leading digital operator that connects nearly 160 million customers across six nations, impacting over 7% of the global population. Focused on transforming lives through technology, the Company offers innovative digital services that empower users and promote economic development. With its headquarters in Dubai and a listing on NASDAQ, VEON is not just a telecom company; it’s a driving force for technological advancement.
Frequently Asked Questions
What is the total amount allocated for VEON's buyback program?
VEON has committed a total of $100 million for its share buyback program, with the current phase totaling $35 million.
How many ADSs has VEON repurchased so far?
VEON has successfully repurchased approximately 1.43 million ADSs during the first two phases of the program.
What is the strategic intent behind VEON's buyback plan?
The primary goal is to enhance shareholder value by buying back shares deemed undervalued, thus improving overall financial metrics like earnings per share.
Is VEON planning to raise external financing?
Yes, VEON is considering issuing bonds to support its strategic initiatives and expand its financial capabilities.
Where can I find more information about VEON?
To learn more about VEON and its offerings, you may visit their official website at www.veon.com.
For further inquiries, you can reach VEON’s communications team via email at pr@veon.com or contact investor relations at ir@veon.com.
