VEON launches third phase of $35 million share buyback program

Published 16/06/2025, 11:54
VEON launches third phase of $35 million share buyback program

DUBAI - Global digital operator VEON Ltd. (NASDAQ:VEON) announced Monday it will commence the third phase of its share buyback program, allocating up to $35 million for repurchasing American Depositary Shares (ADSs). The announcement comes as the stock has experienced a significant 21% decline over the past week.

This follows the completion of the second phase on May 21, 2025. The company has repurchased 1.43 million ADSs at an average price of $45.59 per ADS through the first two phases of the program, which was initially announced on August 1, 2024, with a total allocation of up to $100 million.

According to the press release statement, VEON believes its ADSs are undervalued compared to its operational performance and strategic potential. The buybacks will be conducted on the open market through a 10b5-1 plan with a registered broker-dealer, in compliance with Rule 10b-18.

The company is also exploring options to raise external financing through a private placement of bonds with a tenor of up to four years. If issued, the notes would be issued by VEON Midco B.V. and guaranteed by VEON Amsterdam B.V. Discussions with potential institutional investors are ongoing.

VEON operates across six countries serving nearly 160 million customers. The company is headquartered in Dubai and listed on NASDAQ.

The announcement regarding the share buyback program and potential bond issuance was made in a company press release. Any bond offering would be limited to non-retail investors in the European Economic Area and the UK.

In other recent news, VEON Ltd. reported its first-quarter financial results for 2025, revealing a revenue increase of 12.9% in local currency and 8.9% in U.S. dollar terms, reaching $1.026 billion. The company’s Adjusted EBITDA rose by 13.7% to $439 million in dollar terms, surpassing Benchmark’s more conservative estimates. Additionally, VEON finalized a strategic partnership with Engro Corporation Limited in Pakistan, which involves transferring telecommunications infrastructure assets to Engro Connect, marking a significant step in VEON’s asset-light strategy. As part of this agreement, Engro will pay Jazz, VEON’s subsidiary, approximately $188 million and guarantee the repayment of Deodar’s intercompany debt of $375 million. In another development, VEON’s Kazakh subsidiary, QazCode, partnered with AI firm Seekr to enhance AI-powered solutions for businesses, highlighting VEON’s commitment to technological advancement. Furthermore, VEON appointed Anand Ramachandran as the new Corporate Development Officer to oversee Mergers & Acquisitions and Investor Relations. Benchmark analysts maintained their Buy rating on VEON, raising the stock price target to $60, reflecting confidence in the company’s growth prospects and strategic initiatives. These developments showcase VEON’s ongoing efforts to strengthen its market position and expand its digital services.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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