VEON finalizes telecom infrastructure deal with Engro Cor

ISLAMABAD and DUBAI - VEON Ltd. (NASDAQ:VEON), a global provider of digital connectivity and services with an impressive 87.18% gross profit margin, has announced the completion of regulatory procedures for its strategic partnership with Pakistan’s Engro Corporation Limited for the management of telecommunications infrastructure assets in Pakistan. The agreement, first disclosed on December 5, 2024, is set to enhance the efficiency of infrastructure and digital investments in the country. According to InvestingPro data, VEON has demonstrated strong market performance with a 108.27% return over the past year.

Under the terms of the partnership, VEON’s subsidiary in Pakistan, Pakistan Mobile Communications Limited, will transfer its infrastructure assets under Deodar (Private) Limited to Engro Connect, a subsidiary of Engro Corporation, through a scheme of arrangement. The necessary regulatory nods, including those from the Competition Commission of Pakistan, the Pakistan Telecommunication Authority, and the Islamabad High Court, have been obtained. The finalization of the arrangement and related settlements are anticipated in June. VEON, currently trading at a P/E ratio of 8.33 with an EBITDA of $1.529 billion, shows strong fundamentals. For detailed analysis and additional insights, check out the comprehensive Pro Research Report available on InvestingPro.

The collaboration is expected to transform Jazz, VEON’s digital operator in Pakistan, into an asset-light services company, fostering growth for both Jazz and Engro Corp. VEON Group CEO Kaan Terzioglu expressed satisfaction with the progress, citing the partnership as a benchmark for how efficient infrastructure investments can drive digital growth in emerging markets. Jazz CEO Aamir Ibrahim echoed these sentiments, indicating the move as a significant step in their ServiceCo transformation, which aims to deliver digital solutions while collaborating with Engro Corp for infrastructure.

Engro’s CEO, Abdul Samad Dawood, emphasized the company’s commitment to empowering communities and expanding access to drive growth for future generations. As part of the agreement, Engro will pay Jazz approximately USD 188 million and will guarantee the repayment of Deodar’s intercompany debt of USD 375 million. Jazz will continue to lease Deodar’s infrastructure to provide nationwide mobile voice and data services under a long-term agreement. With a market capitalization of $3.72 billion and revenue growth of 8.84% in the last twelve months, VEON demonstrates solid financial performance. InvestingPro analysis indicates the stock is currently undervalued, with multiple positive indicators suggesting strong growth potential.

This partnership aligns with Pakistan’s digital ambitions and is expected to strengthen the country’s digital transformation. VEON operates in six countries and serves nearly 160 million customers, while Jazz is Pakistan’s leading digital operator with over 71.5 million cellular subscribers. Engro Corporation is a diversified conglomerate in Pakistan with a history of establishing pioneering businesses in collaboration with global partners.

The information provided is based on a press release statement from VEON Ltd.

In other recent news, VEON Ltd has reported its first-quarter financial results for 2025, showing substantial growth. The company achieved a 12.9% increase in revenue in local currency terms and an 8.9% rise to $1.026 billion in U.S. dollar terms. Adjusted EBITDA also saw significant growth, increasing by 13.7% to $439 million in dollar terms. These results exceeded Benchmark’s more conservative estimates, which anticipated lower growth figures. Additionally, VEON’s digital revenue surged by 50.2%, now representing 14.3% of total revenues.

The company also announced a partnership between its Kazakh subsidiary, QazCode, and AI firm Seekr to enhance AI-powered business solutions. This collaboration aims to boost QazCode’s capabilities in developing advanced AI applications. VEON has further strengthened its leadership team by appointing Anand Ramachandran as the new Corporate Development Officer, who will oversee mergers and acquisitions and investor relations.

In strategic developments, VEON has partnered with Airspan Networks to improve Ukraine’s telecommunications infrastructure, committing $1 billion to rebuild the country’s digital framework. Lastly, Benchmark analysts have raised VEON’s stock price target to $60, reflecting confidence in the company’s growth prospects and recent strategic moves.

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