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Cellular service Veon sells Russian enterprise for $2.2 billion

  • This content material is produced in Russia, the place the legislation restricts protection of Russian navy actions in Ukraine

MOSCOW, November 24 (Reuters) – Amsterdam-listed cell operator Veon (VON.AS) on Thursday mentioned it could promote its Russia enterprise, Vimpelcom, to senior members of the group. Vimpelcom administration, headed by CEO Aleksander Torbakhov, for 130 billion rubles. (2.2 billion USD)

Veon operates the Beeline model via Vimpelcom in Russia, a market that accounts for about half of the group’s income. Veon additionally operates Beeline in Kazakhstan and Kyivstar in Ukraine.

Veon, which expects the transaction to be accomplished by June 1, joins a rising record of Western corporations promoting property in Russia since Moscow despatched tens of hundreds of troops into Ukraine on the finish of February.

Veon mentioned the acquisition of Vimpelcom’s administration implies an anticipated enterprise worth of roughly 370 billion rubles. Though Veon is being bought at a reduction, the transaction is a comparatively uncommon instance of a forex change between events as corporations race to depart Russia.

Japan’s Nissan (7201.T) misplaced $687 million when it transferred its Russia enterprise to a state-owned entity for one euro, mirroring an earlier transfer by Renault (RENA.PA) ) bought its majority stake in Russia’s Avtovaz for one ruble. Many corporations haven’t disclosed costs.

Veon shares rose 4.5% in skinny Amsterdam buying and selling to 0.55 euros. Shares have been buying and selling close to report lows since plunging after Russia started what it referred to as a “particular navy operation” in Ukraine.

Veon CEO Kaan Terzioglu mentioned in an announcement to Reuters: “The acquisition of the administration of our Russia operations will profit all events concerned.

“Clients and staff will see a seamless transition, traders and bondholders will see our stability sheet shrink, and Veon will be capable to give attention to its digital working technique.” on our portfolio of lively international locations.”

Torbakhov mentioned the sale marks an essential milestone for Beeline.

“The highest administration group represented by me, Svetlana Kirsanova, Maxim Zaikov, Valeriy Shorzhin and Renat Nasretdinov tried to give you essentially the most balanced supply to the Veon Group, guaranteeing victory within the aggressive asset sale course of. ,” mentioned Torbakhov.

($1 = 60,3500 rubles)

Reporting by Alexander Marrow in Moscow and Supantha Mukherjee in Stockholm; extra reporting by Jake Cordell and Toby Sterling; Enhancing by Man Faulconbridge, David Goodman and Mark Potter

Our Requirements: Thomson Reuters Fiduciary Ideas.

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