Telecoms group VEON to move headquarters to Dubai after Amsterdam delisting

VEON

14/10/2024 06:00

By Gianluca Lo Nostro
       Oct 14 (Reuters) - VEON  VON.AS , the owner of Ukraine's
leading mobile operator Kyivstar, said on Monday that it plans
to move its group headquarters from the Netherlands to the
United Arab Emirates, in an attempt to boost visibility among
Gulf investors. 
    
    WHY IT'S IMPORTANT
    After its delisting from Amsterdam, VEON will complete its
relocation from the Netherlands - where it moved in 2010 - to
Dubai by the end of the second quarter of 2025.
    According to data compiled by LSEG, the telecoms group would
become the largest Nasdaq-listed company headquartered in Dubai.
    Unlike its European peers, VEON has been targeting other
markets where 4G penetration is still relatively low,
prioritising 4G networks over 5G expansion, and offering
additional digital services for healthcare and banking.
    In August, the company said it will delist from Euronext
Amsterdam by the end of the year to cut costs, viewing New York
as the "best fit" venue for global tech businesses. 
    
    KEY QUOTES
    "Our decision to relocate VEON's headquarters to Dubai
reflects the strategic realignment of our focus with closer
proximity to our key markets," Group CEO Kaan Terzioglu said in
a statement.
    A spokesperson for the company told Reuters it would make
more sense to have certain headquarter staff with Opco-facing
functions closer to the markets in which it operates.
    He added that all of the current Amsterdam employees will
receive transition offers.
    
    CONTEXT
    VEON operates in six countries under its telecoms and
fintech brands, with Pakistan being the group's largest market
after it sold its Russian business in 2023.
    In Ukraine, which accounts for almost a third of the
company's core profit, VEON has pledged to invest $1 billion in
digital infrastructure. 
    Banglalink, VEON's Bangladeshi unit, is also seeking to
expand its customer base, encouraged by the prospect of
regulatory reforms.
    
    

 (Reporting by Gianluca Lo Nostro; Editing by Sherry
Jacob-Phillips)
 ((gianluca.lonostro@thomsonreuters.com;))