VEON and MegaFon complete divestiture of Euroset joint venture
AMSTERDAM and MOSCOW, Feb. 26, 2018 /PRNewswire/ -- VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a leading global provider of connectivity and internet services headquartered in Amsterdam and serving more than 240 million customers, and PJSC "MegaFon" (LSE: MFON), a leading Russian provider of integrated digital services ("MegaFon"), announced today the completion of the transaction to end their Euroset joint venture.
Pursuant to terms of the transaction, PJSC VimpelCom, the Russian subsidiary of VEON, acquired half of Euroset's retail stores and pays to MegaFon RUB 1.25 billion (approximately USD 20 million), subject to certain adjustments, while MegaFon acquired PJSC VimpelCom's 50% interest in Euroset, resulting in MegaFon now owning 100% of Euroset with all of its debt and liabilities. As a result of the transaction, PJSC VimpelCom has fully disposed of its interest in Euroset with all of its rights and obligations. Prior to the transaction, Euroset, Russia's largest mobile and electronics retail network, was co-owned by PJSC VimpelCom and MegaFon.
Vasyl Latsanych, Chief Executive Officer of PJSC VimpelCom, commented: "Completion of this important transaction marks a new stage in the development of the Russian telecom distribution channel, doubling PJSC VimpelCom's retail network in Russia. Furthermore, it now allows us to commence the planned nationwide integration of the stores under our single brand "Beeline" in line with our previously announced mono-brand strategy. We are confident that our strategy will provide existing and new customers with leading customer experience and top-class services."
About VEON
VEON is a NASDAQ and Euronext Amsterdam-listed global provider of connectivity and internet services, with an ambition to lead the personal internet revolution for over 240 million customers it currently serves, and many others in the years to come. For more information visit: http://www.veon.com.
Disclaimer
This release contains "forward-looking statements", as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and include statements relating to, among other things, the development of the Russian telecom distribution channel, the implementation of PJSC VimpelCom's mono-brand strategy, and the provision of leading customer experiences and top-class services. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. Although VEON believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that such expectations will be achieved. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements as a result of risks and uncertainties. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.
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SOURCE VEON Ltd.
