AMSTERDAM, Nov 2 (Reuters) – Dutch telecoms operator Veon Ltd (VON.AS) mentioned on Wednesday it was searching for to promote its Russian operations, which make up greater than half of its income and earnings.
Many firms have sought to reduce exposure to Russia for the reason that begin of the Ukraine battle in February and have halted or terminated operations there.
Veon, which additionally has operations in Ukraine, Pakistan and Kazakhstan, mentioned it was conducting a “aggressive gross sales course of” for the enterprise, which operates one in every of Russia’s largest cellular networks below the Beeline model.
“There could be no assurance that the gross sales course of talked about above will end in a suitable supply or, even when a suitable supply is obtained and ends in an acquisition settlement being reached, that the requisite approvals will likely be acquired,” the corporate mentioned in a press release.
Veon’s shares rose as a lot as 11% in skinny commerce in Amsterdam, to 0.50 euros. Veon’s shares have traded close to document lows since tumbling after Russia despatched its armed forces into Ukraine in February, which Moscow calls a “particular operation”.
Credit standing businesses S&P and Fitch have withdrawn scores for Veon, which had $8.1 billion in internet debt and $3.2 billion in money liquidity as of Oct. 7, based mostly on latest firm statements.
The end result of the sale will likely be essential for shareholders and collectors as Veon’s non-Russian companies are worthwhile on an working foundation however small in relation to the corporate’s debt.
Veon’s place is difficult on account of its presence in Ukraine, the place it has struggled to keep the Kyivstar mobile network operating all through the battle.
CEO Kaan Terzioglu informed Reuters in March he hoped the corporate can be allowed to proceed working in each markets as a necessary service.
The corporate mentioned on Wednesday it hoped to dealer the very best final result for the corporate, shareholders, collectors, prospects and staff “each inside and out of doors Russia”.
“There was no request from any authorities for VEON to promote its Russian operations,” a spokesperson informed Reuters on Wednesday. Greater than half of Veon’s 44,500 staff are in Russia, based mostly on the corporate’s 2021 annual report.
Beeline had earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) of 20 billion roubles ($325 million) by means of the primary eight months of 2022. It competes with bigger rival MTS, in addition to Megafon and Tele2.
Veon’s group whole EBITDA in the identical interval was $604 million.
Reporting by Juliette Portala, Toby Sterling; modifying by Lincoln Feast, Jason Neely and Jane Merriman
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