On Monday, VEON (NASDAQ: VEON), the owner of Ukraine’s leading mobile operator Kyivstar, said that it plans to move its group headquarters from the Netherlands to the United Arab Emirates, in an attempt to boost visibility among Gulf investors.
WHY IT’S IMPORTANT
After its delisting from Amsterdam, VEON will complete its relocation from the Netherlands – where it moved in 2010 – to Dubai by the end of the second quarter of 2025.
According to data compiled by LSEG, the telecoms group would become the largest Nasdaq-listed company headquartered in Dubai.
Unlike its European peers, VEON (NASDAQ: VEON) has been targeting other markets where 4G penetration is still relatively low, prioritizing 4G networks over 5G expansion, and offering additional digital services for healthcare and banking.
In August, the company said it would delist from Euronext Amsterdam by the end of the year to cut costs, viewing New York as the “best fit” venue for global tech businesses.
KEY QUOTES
“Our decision to relocate VEON’s headquarters to Dubai reflects the strategic realignment of our focus with closer proximity to our key markets,” Group CEO Kaan Terzioglu said in a statement.
A spokesperson for the company told Reuters it would make more sense to have certain headquarters staff with Opco-facing functions closer to the markets in which it operates.
He added that all of the current Amsterdam employees will receive transition offers.
CONTEXT
VEON (NASDAQ: VEON) operates in six countries under its telecoms and fintech brands, with Pakistan being the group’s largest market after it sold its Russian business in 2023.
In Ukraine, which accounts for almost a third of the company’s core profit, VEON has pledged to invest $1 billion in digital infrastructure.
Banglalink, VEON’s Bangladeshi unit, is also seeking to expand its customer base, encouraged by the prospect of regulatory reforms.
(Source: ReutersReuters)
