Veon and Engro cleared to combine telecoms assets in Pakistan

Details: John Tanner; Category: Operators; 26 May 2025; 4858 views

Veon announced on Friday it has secured all regulatory approvals for its deal with Pakistan's largest conglomerate Engro to pool and manage their respective telecoms infrastructure assets in Pakistan.

Under the deal first announced in December 2024, Deodar – which Veon owns via its subsidiary Pakistan Mobile Communications Limited (a.k.a. Jazz) – will vest into Engro Connect via a scheme of arrangement.

Engro will pay Jazz US$188 million and will guarantee the repayment of Deodar's intercompany debt of US$375 million. Jazz will continue to lease Deodar’s infrastructure for its nationwide mobile voice and data services under a long-term partnership agreement.

Veon said both companies have secured the necessary regulatory approvals, including from the Competition Commission of Pakistan, the Pakistan Telecommunication Authority, and the Islamabad High Court. The scheme of arrangement and related settlements are expected to be completed in June 2025.

Kaan Terzioglu, Veon group CEO and chairman of Jazz Board, said the deal will set the standard in terms of how efficient infrastructure investments can drive digital growth in frontier markets.

"This landmark agreement will accelerate Jazz’s transformation into an asset-light services company, unlocking further growth potential for both Jazz and Engro Corp in their respective areas, and ultimately strengthening Pakistan’s digital transformation,” he said in a statement.

Meanwhile, Engro Holdings CEO Abdul Samad Dawood said the investment in Deodar “reinforces telecom infrastructure as a key vertical for us and we are keen on expanding access, empowering communities, and future-proofing the infrastructure that will drive growth for generations to come.”