VEON Advances Asset-Light Strategy with $100M Partial Sale of Banglalink Towers
Amsterdam-based global telecommunications provider VEON Ltd. VEON, announced a substantial move towards an asset-light operational model with its recent deal involving the Bangladeshi arm, Banglalink. The deal comprises a partial sale of Banglalink's towers to a local entity in Bangladesh. The strategic divestiture underscores VEON's commitment to optimizing its asset portfolio and enhancing its core digital and convergent service offerings across its operating regions.
Strategic Sale to Boost Operational Efficiency
In a significant development on 15 November 2023, VEON, which offers a range of fixed-line and mobile telecommunications services, revealed that its wholly owned subsidiary Banglalink has initiated an agreement to transact a portion of its tower portfolio in a deal valued at USD 100 million. This agreement is part of VEON's broader strategy to streamline operations and pivot towards a more capital-efficient business framework. The transaction aims to release capital locked in physical assets while ensuring Banglalink can continue to deliver high-quality mobile connectivity to its customers.
Implications for VEON's Market Position
The partial asset sale is indicative of VEON's ongoing efforts to refine its business model, focusing on being at the forefront of digital transformation across emerging markets. By divesting non-core assets, VEON is able to reallocate resources and investment towards expanding and developing its digital services landscape—a critical driver of growth in today's fast-evolving technology sector. Moreover, the infusion of liquidity from such transactions serves to strengthen the company's balance sheet, potentially leading to enhanced shareholder value.
VEON, telecommunications, asset-light