Veon completes sale of Beeline in Kyrgyzstan

BISHKEK. Aug 13 (Interfax) - Holding company Veon has finalized the sale of its business in Kyrgyzstan, with the transaction for transferring a 50.1% stake in Menacrest AG, which owns telecom operator Sky Mobile LLC operating under the Beeline brand in Kyrgyzstan, to state-owned Eldik Bank now completed.

"Veon Ltd., a global digital communications operator, announces the completion of the sale of its indirect 50.1% stake in Sky Mobile LLC, operating under the Beeline brand in Kyrgyzstan, to OJSC Eldik Bank," the group said.

The transaction aligns with Veon's previously announced strategy to simplify its group structure and optimize its asset portfolio, it said. The holding company intends to focus on countries with large populations and opportunities to develop multiple scalable digital businesses. According to information on the holding's website, Veon currently owns assets in Pakistan, Ukraine, Bangladesh, Kazakhstan and Uzbekistan.

After Veon announced its intention to sell the stake in CG Cell Technologies in March 2024, the Kyrgyz government exercised its right of first refusal and instructed Eldik Bank to acquire the shares. The bank has now become the 100% owner of Sky Mobile, the financial institution clarified to Interfax.

Sky Mobile will continue to operate under the Beeline brand while retaining its team, business model and customer base, Eldik Bank said. The combination of the two companies' potential "will make it possible to offer the market advanced solutions in mobile banking, digital payments and next-generation financial and communication services," the bank said. Joint projects aimed at developing fintech, integrating modern payment tools and improving digital accessibility in the regions are planned in the near future.