Veon Georgia

2022: Sale of Georgian business

On June 8, 2022, Veon announced the sale of the Georgian business to a former local partner of the company (his name was not disclosed). The transaction cost amounted to $45 million and corresponds to 3.5 times Veon Georgia's EBITDA for 2021.

Veon Group CEO Caan Terzioglu, commenting on the deal, said the following:

After a period of ongoing negotiations, we successfully entered into an agreement to sell our existing subsidiary in Georgia to our former local partner. This transaction is another step towards optimizing our group's operations. Beeline in Georgia is the leader in terms of penetration of 4G and digital services, thanks to the successful implementation of the strategy of the digital operator Veon. The company's management and the new Georgian shareholder intend to continue to develop the company's successful business and support the country's digital transformation.

Veon sold Georgian business

In early May 2022, the Georgian Communications Commission agreed to sell Veon Georgia to private entrepreneur Khvicha Makatsaria, TASS reported. The commission's release emphasized that Makatsaria asked authorities to buy stakes in Veon Georgia on April 4, 2022.

By June 2022, Veon provides communication services in Russia, Algeria, Armenia, Bangladesh, Kazakhstan, Uzbekistan and other countries. Veon Georgia operates under the Beeline brand, the company is one of the largest operators in the country.

Apparently, Veon changed its strategy to reduce its presence in the CIS countries, said TelecomDaily CEO Denis Kuskov. According to him, the Georgian asset Veon is working quite successfully, showing good results, and competition in the region is moderate. Most likely, the decision to withdraw from the Georgian asset was made for political reasons, the analyst added in a conversation with Kommersant^[1]

Notes

Шаблон:Remarks