VEON's Kyivstar Advances Digital Offerings with Uklon Deal
Kyivstar's Expansion into Ride-Hailing Services
VEON Ltd., a prominent global digital operator, has recently announced a significant milestone in its business journey. Its wholly-owned subsidiary, JSC Kyivstar, is poised to acquire Uklon, an established leader in the ride-hailing and delivery sectors in Ukraine. This acquisition is not just a strategic move; it’s part of a larger vision to enhance the digital landscape and consumer services in the region.
About Uklon: A Leader in Ride-Hailing
Uklon, which operates across 27 cities in Ukraine, has created a robust platform that connects over 100,000 driver-partners. With impressive statistics, the company reported facilitating more than 100 million rides and over 3 million deliveries, emphasizing its vital role in Ukraine's transportation ecosystem. The entry into delivery services and expansion to Uzbekistan shows Uklon’s commitment to innovating and serving more customers effectively.
Investment Details and Expectations
Kyivstar's acquisition will see it acquiring 97% of Uklon's shares, with the total deal valued at approximately USD 155.2 million. The current CEO of Uklon, Serhii Hryshkov, will retain his position, continuing to advance the company’s offerings and market presence. This agreement is pending standard closing conditions and approvals, but the strategic implications are clear — it signals Kyivstar's unwavering belief in the potential of Ukraine's digital economy.
Driving Digital Growth in Ukraine
Kaan Terzioglu, CEO of VEON Group, emphasized that this acquisition represents more than just an investment; it’s a commitment to fostering digital growth in Ukraine. Uklon's integration into VEON’s wider suite of digital products, which already serves 120 million active users across multiple countries, is a significant step. Other notable VEON offerings include Helsi, a leading digital healthcare platform, and KyivstarTV, a popular streaming service.
Enhancing Services for Millions
Ukraine has faced numerous challenges, but Kyivstar has dedicated itself to rebuilding the nation's digital infrastructure. Oleksandr Komarov, CEO of Kyivstar, expressed enthusiasm for welcoming Uklon into its family, describing it as a brand beloved by many Ukrainians. This merger aims to enhance the digital experience for millions through innovative services available 24/7.
VEON's Commitment to Investment
The overarching narrative of VEON's commitment to Ukraine remains strong, with a pledge of USD 1 billion from 2023 to 2027 aimed at boosting the nation's digital capabilities. Collaborations like its partnership with Starlink further enhance connectivity, demonstrating VEON's dedication to driving technological growth in the region.
Anticipating Market Expansion
On March 18, 2025, VEON announced a business combination agreement with Cohen Circle Acquisition Corp. I, slated to bring Kyivstar to the Nasdaq Stock Market in the U.S. under the ticker symbol KYIV. This move, subject to shareholder approval, is expected to help increase transparency and accessibility for investors and further enhance Kyivstar’s position in global markets.
Understanding the Companies
VEON is not just a telecommunications operator; it offers diverse digital services to nearly 160 million customers across six countries. Its innovative approach empowers individuals and stimulates economic growth by blending connectivity and digital services. Meanwhile, Kyivstar, recognized as Ukraine’s largest digital operator, serves over 23 million mobile subscribers and has invested heavily in his infrastructure over a 27-year presence in the country.
Conclusion
The acquisition of Uklon by Kyivstar symbolizes a meaningful chapter in the digital evolution of Ukraine’s economy. By combining resources and strategies, both companies are well-positioned to innovate and expand their impact in the market.
Frequently Asked Questions
What is the significance of Kyivstar's acquisition of Uklon?
This acquisition enhances Kyivstar's portfolio in digital consumer services, marking a strategic expansion into ride-hailing and delivery.
How many cities does Uklon operate in?
Uklon operates in 27 cities across Ukraine, connecting a vast network of driver-partners.
What value does Kyivstar see in Uklon's services?
Uklon brings strong market leadership, technology innovation, and a beloved brand, complementing Kyivstar's existing digital services.
What are the expected benefits of this merger?
The merger aims to enhance digital service offerings for millions of users, leveraging Uklon's technology and customer base.
How is VEON supporting Ukraine's digital economy?
VEON has committed USD 1 billion to enhance Ukraine’s digital infrastructure and partnered with Starlink for better connectivity.
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