Pakistan Mobile Communications (Jazz)

History

2020: Veon purchased Jazz

At the end of September, 2020 the telecommunication holding Veon which includes Russian VimpelCom, announced increase up to 100% of the share in the Pakistani mobile operator Jazz.

Under the terms of the agreement, the Emirates holding Dhabi Group sells to Veon a 15 percent share in Pakistan Mobile Communications Limited (PMCL is operating company for Jazz). Earlier Veon already possessed 85% of stocks of the operator.

The transaction is made out through the so-called put option when the option buyer acquires the right to sell a certain quantity of an underlying asset to the seller at the fixed price during option validity period.

Veon purchased 100% of the Pakistani mobile operator Jazz

Having become the only owner of Jazz, the Veon company as she said in the press release, will be able to simplify and rationalize management of the Pakistani assets and also to receive all dividends paid to PMCL.

It is going to close the transaction in the fourth quarter 2020. Its financial component remained in a secret. On its conditions, the option should be performed at fair market value and, thus, the price of the option will be established by independent appraisers. According to estimates of analysts, Veon could pay about $300-340 million for 15% of Jazz.

By the end of September, 2020 the option with a right to sell of Jazz of Veon company appears in the reporting as the obligation for a participation non-controlling interest which cost is revaluated quarterly.

In addition to Pakistan, Veon owns assets in Russia, in Ukraine, in Armenia, Kazakhstan, Kyrgyzstan, Uzbekistan, Georgia, Algeria and Bangladesh. The largest shareholder of Veon – Mikhail Friedman's LetterOne. 8.3% of stocks of holding are under control of the Dutch stichting (pattern of ownership, stipulated by the legislation the Netherlands). 43.8% of stocks of the company are in free circulation.^[1]

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