VEON is the sole and rightful owner of Kyivstar
13 October 2023 - 1:50AM
Company responds to speculation about
Kyivstar
Amsterdam, 12 October 2023 – VEON Ltd. (NASDAQ:
VEON, Euronext Amsterdam: VEON), a global digital operator that
provides converged connectivity and online services, issues the
following clarification regarding the developments in Ukraine, in
response to recent press reports and in order to address the
questions raised by VEON’s international debt and equity
investors.
On 6 October 2023, the Security Services of Ukraine (SSU)
announced that the Ukrainian courts are seizing all “corporate
rights” of Mikhail Fridman, Peter Aven and Andrei Kosogov in 20
Ukrainian companies that these individuals beneficially own, while
criminal proceedings, unrelated to Kyivstar or VEON, are in
progress. This announcement was incorrectly characterized by
some Ukrainian media as a “seizure” or “freezing” of “Kyivstar’s
assets”. On 9 October 2023, Ukrainian media further reported, with
a headline which incorrectly targets Kyivstar, that the Ministry of
Justice of Ukraine is separately finalizing a lawsuit in the
Ukraine High Anti-Corruption Court to confiscate any Ukrainian
assets of M. Fridman.
At present, neither VEON nor Kyivstar have received any official
communication from the Ukrainian authorities or courts regarding
these matters. The only information that VEON has at the moment is
from its share registrar in Ukraine, which confirms that any
ownership changes to Kyivstar are currently not permitted.
While VEON does not comment on unconfirmed reports in principle,
the escalation of the rhetoric and the questions that VEON received
from its debt and equity investors necessitate that the Company
clarifies the following facts.
First and foremost, VEON is and remains Kyivstar’s sole and
rightful owner. None of the individuals mentioned in the SSU
announcement referenced above own any shares in VEON or
Kyivstar.
As previously stated, VEON is an Amsterdam-headquartered,
Nasdaq- and Euronext Amsterdam-listed company with an international
debt and equity investor base that includes US, EU and UK
individuals and institutions. VEON has no controlling or majority
shareholder. The individuals mentioned in the SSU announcement
cannot exercise any rights regarding VEON or Kyivstar, are not a
part of either company’s governance mechanisms, including boards,
nor do they have the ability to control or influence decisions made
by VEON or Kyivstar. They do not derive benefits from VEON or any
of its operating companies. Any actions aimed at the rights,
benefits or funds of the aforementioned individuals cannot
legitimately be directed toward Kyivstar or VEON.
VEON notes and welcomes the subsequent clarification by the SSU1
noting that “The seizure of corporate rights of Ukrainian companies
does not affect the protection of the interests of foreign
investors and owners of shares of corporate rights, does not hinder
their economic activity and the possibility of receiving
dividends.” Underlining the duties to employees, customers and
investors, VEON and Kyivstar intend to use all available avenues to
protect the rights of VEON and Kyivstar.
VEON deeply values its investors’ support for its strategic
choices, including its exit from Russia – one of the most
significant corporate exits given VEON’s public listing and the
relative size of the asset – and appreciates the support it has
received from US, UK and EU regulators over the course of the past
19 months as a Nasdaq- and Euronext Amsterdam-listed company.
Kyivstar, with the full support of its parent company VEON,
continues to serve its 25 million customers and keeps not only its
own customers, but also the broader country connected through
extremely challenging conditions, with 94% network availability and
full operational integrity in line with the national security
priorities of Ukraine. VEON and Kyivstar are fully committed to
continue serving Ukraine, as demonstrated by the USD 600 million
investment pledge for the recovery and reconstruction of the
country.
About VEONVEON is a digital
operator that provides converged connectivity and digital services
to nearly 160 million customers. Operating across six
countries that are home to more than 7% of the world’s population,
VEON is transforming lives through technology-driven services that
empower individuals and drive economic growth. Headquartered
in Amsterdam, VEON is listed on NASDAQ and Euronext.
For more information visit: https://www.veon.com.
Disclaimer
This release contains “forward-looking statements,” as the
phrase is defined in Section 27A of the U.S. Securities Act of
1933, as amended, and Section 21E of the U.S. Securities Exchange
Act of 1934, as amended. Forward-looking statements are not
historical facts, and include statements relating to, among other
things, VEON’s governance, ownership and investment plans.
Forward-looking statements are inherently subject to risks and
uncertainties, many of which VEON cannot predict with accuracy and
some of which VEON might not even anticipate. The forward-looking
statements contained in this release speak only as of the date of
this release. VEON does not undertake to publicly update, except as
required by U.S. federal securities laws, any forward-looking
statement to reflect events or circumstances after such dates or to
reflect the occurrence of unanticipated events.
Contact Information
VEON Hande AsikGroup Director of
Communication pr@veon.com
TUVA PartnersJulian Tannerjulian.tanner@tuvapartners.com
1 Translated from
https://ssu.gov.ua/novyny/zavdiaky-sbu-v-ukraini-areshtovano-vsi-aktyvy-trokh-oliharkhiv-putina-na-ponad-17-mlrd-hrn
issued on 6 October 2023, in Ukrainian language.
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