Telecoms firm Veon granted U.S. licence for sale of Russian business
May 4 (Reuters) -Telecoms company Veon VON.AS has been issued with a U.S. licence authorising U.S. citizens to engage in transactions required for the divestment of its Russian business, Vimpelcom, the company said on Thursday.
In November, Veon announced plans to sell Vimpelcom to senior members of the Vimpelcom management team, led by CEO Aleksander Torbakhov, for 130 billion roubles ($1.83 billion).
Veon operates the Beeline brand through Vimpelcom in Russia, and its role in Russia had been complicated by the fact the company runs the Kyivstar mobile network brand in Ukraine.
Veon said the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) had issued a licence on April 15, paving the way for Veon to exit Russia, a step many Western companies have taken in opposition to Moscow's actions in Ukraine.
"In addition to this OFAC licence, Veon has also determined that it has the requisite authorisations required by the UK and Bermudan authorities to proceed with the divestment of VimpelCom," Veon said in a first quarter trading update.
"VEON does not believe that a license is required from the EU to execute the sale."
Reporting by Alexander Marrow
Editing by Mark Potter
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
