The Veon holding company decided to sell its stake in Beeline Kyrgyzstan, the company reported on its website. The buyer will be the CG Cell Technologies group.
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Veon indirectly owns 50.1% of Beeline in Kyrgyzstan. According to the telecommunications holding company, the asset is valued at 3.4 times EBITDA by 2023.
At the same time, Veon does not disclose the amount of the transaction or the time of its completion. The sale must be approved by local regulators. Veon’s report notes that in two years the company has turned Beeline Kyrgyzstan into a successful project with double-digit revenue growth for seven consecutive quarters. The holding company also highlighted the high penetration and quality of 4G services.
Last fall, Veon closed a deal to sell Russian company VimpelCom, which owns the Beeline brand. The local management became the new owner of the assets. The terms of the agreement do not provide for a buyback option; Veon has indicated its definitive exit from the Russian market.
At the end of the fourth quarter of 2023, Veon increased its revenue by 1.4% year-on-year. It amounted to $953 million and quarterly EBITDA decreased by 20.4%, to $364 million.
Last spring, even before the agreement to exit the Russian business, the Russian company VimpelCom sold its business in Kazakhstan to the Veon holding.
Author:
Natalia Gormaleva
Source: RB
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