Veon, a multinational telecommunication services company, has offered to acquire Global Telecom Holding’s assets in Banglalink, the third largest telecom operator in Bangladesh.
The announcement was made on Tuesday by the Veon, formerly known as Vimpelcom, headquartered in Amsterdam of Netherlands, made the announcement, reports bdnews24.com.
The deal will allow Veon to have direct control over Banglalink.
Banglalink is a fully owned company of Telecom Ventures Ltd, a unit of Global Telecom Holding (GTH).
Veon owns 51.9 per cent of GTH.
The deal means Veon will increase its exposure to faster-growing South Asian markets as it exits Western Europe.
The transaction is expected to be complete in the fourth quarter of 2018, according to the statement.
It also offered to acquire Global Telecom Holding’s assets in Pakistan’s Jazz.
The combined offer has been valued at $2.55 billion in cash, deferred considerations and assumed debt.
Veon said it is aiming to simplify its corporate structure and increase its focus on emerging markets.
“Our goal is to drive greater value for our shareholders through a more focused and optimised portfolio,” said Ursula Burns, executive chairman of Veon.
“To this end, the company has identified four immediate priorities: simplifying the group’s structure, increasing our operational focus on emerging markets, strengthening the group’s balance sheet and supporting the company’s current dividend policy.”
“Today’s transactions are important steps towards this goal.”
Veon has entered into an agreement with CK Hutchison for the sale of its 50 percent stake in Italy’s Wind Tre. That means CK Hutchison will take control of Wind Tre with Veon fully exiting.
Veon plans to use $1.1 billion, a portion of proceeds from the Wind Tre sale, to help pay for GTH’s assets in Pakistan and Bangladesh.
According to bdnews24.com, Banglalink Corporate Communications Senior Manager Ankit Sureka: “This is a matter between Veon and Global Telecom Holding. It is business as usual for Banglalink.”