VEON and Summit Reach USD 100m Deal for Partial Sale of Bangladesh Towers Portfolio
VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator that provides converged connectivity and online services, today announces that its wholly owned subsidiary Banglalink has entered into an agreement to sell part of its tower portfolio in Bangladesh to Summit Towers Limited for BDT 11 billion – equivalent of roughly USD 100 million. The deal includes a long-term service partnership with Summit Towers.
Upon closing of the deal, more than 2,000 towers – about one-third of Banglalink’s towers portfolio – will be transferred to Summit Towers, a company majority-owned by Summit Communications Group, a leading Bangladeshi infrastructure group.
Since 2021, VEON defines its value creation strategy around three pillars: Asset-light business model and value crystallization of tower assets, sustained growth in core business with the digital operator strategy, and growth in adjacent markets – including financial services, entertainment, education and healthcare – with high-potential digital products. The agreement signed with Summit Towers aligns with the asset-light pillar of VEON’s value creation strategy and supports the Bangladesh Government’s goal of ensuring maximum efficiency in utilization of infrastructure resources.
“Across our markets, VEON operators are transforming into asset-light digital operators. Today’s agreement marks a milestone, ensuring efficient use of resources not only for Banglalink but also for Bangladesh as a whole. This deal will enable us to focus on our core business as the leading digital operator of the country and continue addressing the unmet demand in entertainment, education, healthcare and financial services,” said Kaan Terzioglu, Group CEO of VEON.
“This strategic deal is a prelude to greater cooperation between Banglalink and Summit, the largest integrated telecommunications infrastructure company in Bangladesh. The future is ours to grow together; and with support from VEON, we believe that our collaboration will go beyond the boundaries of Bangladesh into the global arena, setting an example in the region. We look forward to continuing to work together,” said Muhammad Farid Khan, Chairman of Summit Communications Limited and Summit Towers Limited.
“Banglalink has been successfully transforming into a nation-wide digital operator, with internationally recognized high-quality 4G connectivity and leading digital services such as Toffee and MyBL. Our partnership with Summit Towers enables us to focus our resources on our digital offerings, bridging the digital divide for all and providing an outstanding customer experience to the people of Bangladesh.” said Erik Aas, CEO of Banglalink.
The closing of the transaction is subject to regulatory approvals from the Bangladesh Telecommunication Regulatory Commission. The proceeds from the sale will primarily be used to service Banglalink’s financial commitments, and for generating cost efficiencies whilefreeing up resources for the company’s digital expansion.
Nomura International Plc, Allen Overy LLP and Dr. Kamal Hossain & Associates are acting as financial and legal advisors to Banglalink.
Nov. 15, 2023