Veon sells Georgian unit for $45 million

Veon sells Georgian unit for $45 million

Veon has agreed on the sale of its unit in Georgia to a former local partner for US$45 million, as part of plans to simplify the overall group structure.

The operator did not disclose the firm purchasing its operation which runs under the Beeline brand in the Eurasian country. The Georgian market was one that saw years of underinvestment during the Soviet era and is still trying to find its legs in the modern era. 

Currently, there is little to no demand for high-speed services despite operators pressing ahead with 5G roadmaps. Data consumption on 4G networks is relatively low compared to other markets, according to analyst firm Buddecom.

In a statement, Veon Group CEO Kaan Terzioglu said: "After a period of ongoing negotiations, we have successfully concluded an agreement for the sale of our operating subsidiary in Georgia to our former local partner.

“This transaction is another step towards streamlining our group operations. Beeline Georgia is a leader in terms of 4G penetration and digital services, thanks to its successful execution of VEON`s digital operator strategy. Company management and the new Georgian shareholder are committed to continue developing the success of the company and to support the digital transformation of the country."

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