JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
DUBAI - VEON Ltd. (NASDAQ:VEON), a $4.15 billion telecommunications company with impressive gross profit margins of 87%, announced Wednesday it has completed the sale of its 50.1% indirect stake in Sky Mobile LLC, which operates under the Beeline brand in Kyrgyzstan, to state-owned Open Joint Stock Company Eldik Bank. The company’s stock has shown remarkable strength, gaining over 47% year-to-date and trading near its 52-week high of $59.68.
The transaction was finalized after receiving all necessary regulatory approvals, according to a company press release. Eldik Bank has paid the full transaction value, though specific financial terms were not disclosed. InvestingPro analysis reveals VEON maintains strong financial metrics, with annual revenue of $4.09 billion, though its current ratio of 0.79 suggests careful liquidity management is needed.
The sale follows VEON’s previously announced strategy to simplify its group structure and focus on markets with larger populations and opportunities to develop multiple digital businesses beyond connectivity services.
VEON initially announced its intent to sell its stake to CG Cell Technologies in March 2024, but the Government of the Kyrgyz Republic exercised its right of first refusal, designating Eldik Bank to acquire the business on its behalf.
"The sale of our Kyrgyzstan operations marks another important step in VEON’s portfolio optimization," said Kaan Terzioglu, VEON Group CEO.
The transaction was conducted through Menacrest AG, the parent company of Sky Mobile LLC. VEON held a 50.1% indirect stake in Menacrest AG, with the remaining 49.9% held by Crowell Investments Limited, part of Verny Capital Group.
VEON currently operates across five countries, serving over 160 million customers with converged connectivity and digital services. For deeper insights into VEON’s financial health and growth prospects, InvestingPro subscribers have access to 12 additional ProTips and comprehensive analysis through the Pro Research Report, helping investors make more informed decisions.
In other recent news, VEON Ltd. has made several notable announcements. The company successfully priced a $200 million private placement of senior unsecured notes due in 2029, offering an annual interest rate of 9.000% and an expected credit rating of BB- from both S&P and Fitch. VEON also secured approximately $52.3 million in non-redemption agreements for a business combination with Cohen Circle Acquisition Corp. I, which is anticipated to result in Kyivstar Group being listed on a U.S. stock exchange. Additionally, Ukrainian telecom operator Kyivstar, a subsidiary of VEON, received regulatory approval to test Starlink Direct-to-Cell services in Ukraine, following successful integration with Starlink’s satellite network. In a significant development, Kyivstar conducted the first field test of Starlink Direct to Cell technology in Eastern Europe, showcasing the integration of satellite and terrestrial networks. Benchmark has reiterated its Buy rating on VEON stock despite a recent selloff, attributing the decline to broader geopolitical factors rather than company-specific issues.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.