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  • Date of publication: 31 August 2020
  • 2094
  • businessbuysale.com
  • The owner of Kyivstar sells Italian business to its partner for 2.45 billion euros

    Synopsis

    Holding VEON will sell CK Hutchison Holdings Ltd 50% in their joint Italian business Wind Tre

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Description

Holding VEON will sell CK Hutchison Holdings Ltd 50% in their joint Italian business Wind Tre

 

As a result of the transaction, the Italian business will be controlled by CK Hutchison. The deal is planned to be completed in the third or fourth quarter of this year.  

Holding VEON plans to use the proceeds from the sale of the asset (2.45 billion euros or about $ 2.867 billion) for the acquisition of assets in Pakistan and Bangladesh of its structure Global Telecom Holding SAE, in which the holding owns 57.7%.

It is noted that the remaining amount of funds will be used to reduce the debt burden. Thus, VEON plans to reserve a net profit of $ 1.1 billion, which after the deal is used to reduce its debt, as well as support its current dividend policy while simultaneously implementing other strategic initiatives.

In addition, the holding plans to spend about $ 400 million to simplify the company's corporate structure and increase operating activity in emerging markets.

As VEON's CEO Ursula Burns said, the company aims to increase shareholder value through a more focused and optimized portfolio. In this regard, the announced transactions are important steps towards achieving this goal.

 

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