VEON, a leading global provider of connectivity and internet services, announced that its partner in Pakistan, the Dhabi Group, has exercised its put option to sell VEON its 15% shareholding in PMCL, the operating company of Pakistan’s leading mobile operator, Jazz.
The transaction, which requires independent valuation to determine the fair value of the shareholding, is expected to close in 4Q 2020. Once completed, VEON will own 100% of PMCL and achieve full beneficial ownership of Jazz, allowing it to simplify and streamline governance over its Pakistani assets, as well as capture the full value of dividends paid by PMCL.
The put option is presently reflected in VEON Group’s accounts as a liability over a non-controlling interest, the value of which is reappraised on a quarterly basis.
