A leading global provider of connectivity and internet services, Veon confirms that its partner in Pakistan, the Dhabi Group, has exercised its put option to sell Veon its 15% share in Pakistan Mobile Communications Limited (PMCL), the operating company of Pakistan’s leading mobile operator, Jazz.
Veon will be able to simplify and streamline governance over its Pakistani assets, as well as capture the full value of dividends paid by PMCL.
Dhabi Group Selling its 15% Shareholding to Jazz
The transaction requires an independent valuation to determine the fair value of the shareholding and is expected to close in 4Q 2020. Once completed, VEON will own 100% of PMCL and achieve full beneficial ownership of Jazz, allowing it to simplify and streamline governance over its Pakistani assets, as well as capture the full value of dividends paid by PMCL.
According to the company that the drop to $1,892 million was in part the result of lockdowns across its operating markets which put pressure on both operational and financial performance during the quarter before gradual relaxations enabled a steady late-quarter improvement across a number of markets.
The put option is presently reflected in VEON Group’s accounts as a liability over a non-controlling interest, the value of which is reappraised on a quarterly basis.
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