VEON's Strategic Reorganization Sets Stage for Kyivstar Nasdaq Listing
VEON Completes Its Reorganization Strategy
VEON Ltd. (NASDAQ: VEON), a leading player in the global digital space, has recently wrapped up a significant reorganization of VEON Holdings B.V. This restructuring comes as part of a broader strategy to solidify VEON's business operations and support its future plans, including the anticipated listing of Kyivstar Group Ltd., the parent company of Kyivstar, on the Nasdaq under the ticker KYIV.
This reorganization process, which was initially announced earlier this year, included a legal demerger in the Netherlands. As a result, VEON Holdings B.V. has streamlined its focus specifically on Kyivstar and its related assets, transferring other core businesses to newly formed Dutch entities. This bold move positions VEON to better navigate the rapidly evolving digital landscape while maximizing the potential of its key operational segments.
Approval from Bondholders Marks a Key Milestone
In conjunction with the reorganization, VEON achieved a significant milestone by securing the approval from holders of its 2027 bonds to facilitate the transfer of the issuer from VEON Holdings B.V. to VEON MidCo B.V. During a meeting where 95.83% of bondholders were represented, this proposal received unanimous backing, underscoring the confidence investors have in VEON's future.
The support indicates a strong belief that this reorganization is beneficial for long-term growth and aligns with the overall strategy of operating with enhanced efficiency and renewed focus on key markets.
Investment Commitment and Economic Support
Alongside its operational adjustments, VEON continues to showcase its commitment to fostering economic growth in Ukraine. Collaborating with Kyivstar, the company has pledged to invest USD 1 billion into the Ukrainian economy from 2023 to 2027. This commitment reflects VEON's dedication to uplifting the communities it serves in addition to solidifying its market presence.
Moreover, Kyivstar has allocated over UAH 2 billion during the last two years to bolster initiatives that support the nation during challenging times. These efforts include aiding the Armed Forces and investing in social projects aimed at community support, demonstrating the company's resilience and commitment to Ukraine's development.
About VEON and Kyivstar
As a Nasdaq-listed digital operator, VEON delivers connectivity and digital services to nearly 160 million customers worldwide, spanning across six countries that collectively house more than 7% of the global population. The services provided by VEON not only empower individuals but also contribute meaningfully to economic growth through innovative technological advancements.
Kyivstar, recognized as Ukraine's largest digital operator, caters to over 23 million mobile subscribers and more than 1.1 million Home Internet fixed line customers. The company offers a diverse range of mobile and fixed line technologies like 4G, big data analytics, cloud solutions, cybersecurity measures, and digital TV, ensuring comprehensive coverage of digital communication needs.
With a history of 27 years in Ukraine, Kyivstar has established itself as a leading employer and a significant contributor to socially impactful initiatives, reflecting the company’s dedication to its stakeholders and the broader community.
Frequently Asked Questions
What does VEON’s reorganization mean for Kyivstar?
The reorganization positions VEON to enhance its focus on Kyivstar, improving operational efficiency and paving the way for its eventual Nasdaq listing.
How has VEON shown support for Ukraine?
VEON has committed to investing USD 1 billion in Ukraine’s economy and has allocated significant funds to support wartime initiatives and community projects.
What services does Kyivstar provide?
Kyivstar offers mobile and fixed line services, including 4G technology, digital health services, and cloud solutions, among others.
How did bondholders react to the reorganization?
Bondholders expressed strong support for the reorganization, approving the transfer of the issuer, which reflects confidence in VEON’s strategic direction.
What is VEON’s market presence?
VEON operates across multiple countries and services nearly 160 million customers, highlighting its significant footprint in the global digital market.
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