VEON Welcomes Letter from its Shareholder Shah Capital, Reiterates Commitment to Shareholder Value Creation
21 Ottobre 2024 - 7:30PM
Amsterdam and Dubai, 21 October 2024: VEON Ltd.
(Nasdaq: VEON; Euronext Amsterdam: VEON), a global digital operator
(“VEON” or the “Company”), acknowledges the receipt of a letter
from Shah Capital (the “Shah Letter”), a valued long-term
shareholder holding approximately 7% of VEON’s shares, to the VEON
Board of Directors (“VEON Board”).
The letter, which outlines Shah Capital’s views on VEON’s
current valuation and suggests a seven-step strategic roadmap to
enhance shareholder value, has been reviewed by VEON’s Board of
Directors and the Management team. VEON thanks Shah Capital for
their continued support and feedback; and welcomes the opportunity
to address the issues highlighted in the Shah Letter, initially
with a response from VEON Board to Shah Capital shared earlier
today, and also in the longer term through continued
communication.
VEON appreciates Shah Capital’s insights and its recognition of
VEON’s recent operational growth and the ongoing transformation of
the business. While VEON’s share value has more than doubled over
the past 2 years, the Company also shares Shah Capital’s assessment
that its current share price indicates a potential for further
improvement, as VEON positions itself as a leading opportunity for
investors seeking growth in frontier markets.
VEON highlights the following points that have also been
included in VEON Board’s response to the Shah Letter:
- Our engagement with investors, particularly across Europe and
the US, remains strong. We are pleased to note the recent inclusion
of VEON bonds in JP Morgan’s EM Corporate Indices (CEMBI, JACI, and
JSEG). We continue to actively engage with various institutions to
broaden coverage and enhance liquidity. Earlier this year, VEON
also received an upgraded ESG rating of AA from MSCI1, positioning
us among the “Leaders” in our industry.
- Consistent with our announced strategy at our Capital Markets
Day, we are evaluating options to crystallize the value of our
businesses and the assets which we own, including through initial
public offerings of some of our companies when relevant. Our goal
is to ensure that the structuring and timing of any potential
transaction is aligned with maximizing VEON shareholder value.
- Our Digital Operator (DO1440) strategy has been the main driver
of our growth, helping us focus on growing our digital services
portfolio, and enhancing customer engagement and value generation.
As our DO1440 strategy evolves – now complemented by our AI1440
focus – our companies also expand their value offering as leading
providers of of digital finance, healthcare, entertainment,
education, and enterprise services, including as providers of
software, cloud, big data and AI-based solutions.
- We continuously refine our governance structure with
optimizations that drive efficiency, innovation, and enhanced
shareholder value. Recent examples in this regard include our plans
to move our headquarters to Dubai to closer proximity to our
markets, and the commencement of the process to consolidate
our trading on Nasdaq Stock Exchange with our planned delisting
from Euronext Amsterdam.
VEON remains committed to driving sustainable growth and
creating long-term value for all shareholders. The Company is
focused on continuing to execute its strategic initiatives,
including advancing its strong operating outlook, optimizing its
capital structure, and maintaining a disciplined approach to
capital allocation. We are carefully considering the
recommendations in the Shah Letter, which include suggestions on
capital returns, improving market valuation, leveraging VEON’s
strengths in emerging markets and further enhancing communication
with the investment community.
As always, VEON appreciates the constructive engagement from its
shareholders. Our Board and Management will continue to maintain an
open dialogue with all our shareholders as we look to unlock VEON's
full potential.
About VEONVEON is a digital operator that provides
converged connectivity and digital services to nearly 160 million
customers. Operating across six countries that are home to
more than 7% of the world’s population, VEON is transforming lives
through technology-driven services that empower individuals and
drive economic growth. VEON is listed on Nasdaq and Euronext. For
more information visit: https://www.veon.com.
DisclaimerThis release contains “forward-looking
statements”, as the phrase is defined in Section 27A of the U.S.
Securities Act of 1933, as amended, and Section 21E of the U.S.
Securities Exchange Act of 1934, as amended. Forward-looking
statements are not historical facts, and include statements
relating to, among other things, VEON’s strategy and value creation
plans. Forward-looking statements are inherently subject to risks
and uncertainties, many of which VEON cannot predict with accuracy
and some of which VEON might not even anticipate. The
forward-looking statements contained in this release speak only as
of the date of this release. VEON does not undertake to publicly
update, except as required by U.S. federal securities laws, any
forward-looking statement to reflect events or circumstances after
such dates or to reflect the occurrence of unanticipated
events.
Contact InformationHande AsikGroup Director of Stratgy
and Communication pr@veon.com
1 The use by VEON of any MSCI ESG RESEARCH LLC or its affiliates
(“MSCI”) data, and the use of MSCI logos, trademarks, service marks
or index names herein, do not constitute a sponsorship,
endorsement, recommendation, or promotion of VEON by MSCI. MSCI
services and data are the property of MSCI or its information
providers, and are provided ‘as-is’ and without warranty. MSCI
names and logos are trademarks or service marks of MSCI.
Grafico Azioni VEON (NASDAQ:VEON)
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