Veon announces sale of Russian tower business

Russian operator Veon has announced the sale of its mobile network towers in the country.

The Russian tower business will be sold to Service-Telecom for RUB70.65 billion (€820 million), with the transaction scheduled to close in Q4 2021.

Service-Telecom is a partner of  PJSC VimpelCom, which operates the Beeline telecommunications brand. The companies have also announced a long-term master agreement for the provision of tower infrastructure for an initial period of eight years and subsequent extensions of the same length. 

Service-Telecom will acquire 100% of Veon subsidiary National Tower Company (NTC), and its portfolio of 15,400 network towers across Russia. 

Commenting on the transaction, Kaan Terzioğlu, Veon’s CEO, said: “Today’s transaction is a major step forward in realising the value of VEON’s infrastructure portfolio for our shareholders. By entering into a long-term partnership with a strong, experienced counterparty in Russia, Beeline will enjoy the operational and financial flexibility to serve its customers with market-leading services through one of the nation’s largest and most technologically-advanced mobile networks. Moreover, this transaction allows to release the capital to deleverage Veon’s balance sheet and invest in critical aspects of active network and digital opportunities while achieving more financial flexibility.”

Service-Telecom CEO Nikolay Berdin said: “The agreement reached with Veon is a key achievement for Service-Telecom on its way to becoming a leading telecommunication infrastructure operator in Russia. With PJSC VimpelCom as our partner, we expect to drive sustainable long-term growth in Russia while constructing the infrastructure backbone of the digital economy and helping to enhance mobile broadband connectivity for consumers.”