Veon’s Banglalink sells 2,000 towers to Summit Towers for $100m

Veon’s Banglalink sells 2,000 towers to Summit Towers for $100m

Veon subsidiary Banglalink has signed an agreement to sell around a third of its tower portfolio in Bangladesh to Summit Towers for BDT11 billion (US$100 million).

Under the terms of the deal, more than 2,000 Banglalink towers will be transferred to Summit Towers, which is majority-owned by infrastructure group Summit Communications. The deal also includes a long-term service partnership with Summit Towers.

Banglalink CEO Erik Aas said the partnership will enable the operator to focus its resources on its digital offerings.

That also aligns with Veon’s ongoing strategy to shed physical assets in order to focus more on its core ‘digital operator’ business and move into digital products, said Veon group CEO Kaan Terzioglu.

“Across our markets, Veon operators are transforming into asset-light digital operators,” he said. “This deal will enable us to focus on our core business as the leading digital operator of the country and continue addressing the unmet demand in entertainment, education, healthcare and financial services.”

Pending regulatory approvals from the Bangladesh Telecommunication Regulatory Commission, the US$100 million rasied from the transaction will go to towards servicing Banglalink’s financial commitments and generating cost efficiencies, Veon said.

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