Veon receives approval to sell business in Russia

Veon receives approval to sell business in Russia

The Dutch telecommunications holding Veon received permission from the Russian government commission for foreign investment to sell the Russian business to local top management. This was reported in the press service of the company.

“On February 7, 2023, a subcommittee of the Government Commission for the Control of Foreign Investments in the Russian Federation approved the proposed sale of Veon’s Russian assets to certain senior members of VimpelCom’s management, led by its current CEO Alexander Torbakhov, subject to certain conditions,” the statement said. .

It is specified that the FAS also approved the deal, this happened on January 27. It is expected to be closed until June 1st. The fact that the government allowed the sale of Beeline to local top management was reported by Vedomosti sources on February 1.

In November 2022, Veon announced an agreement to sell VimpelCom to Russian top managers of the company. The buyers were Torbakhov, as well as executive vice presidents Svetlana Kirsanova (for retail business), Maxim Zaikov (for corporate business development) and Valery Shorzhin (for network technological development), as well as vice president for corporate development, mergers and acquisitions Renat Nasretdinov .

It was reported that the deal was planned to close before June 2023. VimpelCom was then valued at 370 billion rubles. ($5.35 billion at the exchange rate of the Central Bank on January 26, 2023), but the transaction amount was less – 130 billion rubles. ($1.88 billion). The remaining 240 billion rubles. ($ 3.47 billion) is the net debt of VimpelCom within the total debt of Veon Holdings BV, which the company will assume and repay, a representative of VimpelCom reported to Vedomosti in November 2022.

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