VEON buying 100% of Perfectum mobile operator in Uzbekistan for $207 mln

TASHKENT. Oct 19 (Interfax) - Global digital operator VEON Ltd. has agreed to acquire 100% of Rubicon Wireless, the mobile network operator trading under the Perfectum brand in Uzbekistan, VEON said in a press release.

The total consideration is approximately $207 million inclusive of Perfectum's outstanding financial debt of approximately $93 million. The cash consideration will be funded from VEON's existing cash resources.

Relevant regulatory approvals for the acquisition have been obtained, and completion is expected by the end of October.

Perfectum's assets include 115 MHz of spectrum across the 850 MHz and 3,800 MHz bands, together with modern network equipment and infrastructure assets, including a 5G standalone network deployed using Nokia equipment.

The transaction is expected to increase Beeline Uzbekistan's spectrum holdings by approximately 50%, providing additional resources to enhance network coverage and capacity and support its roadmap for 5G and fixed wireless access services. It strengthens VEON's spectrum portfolio in the country and supports the continued development of its 4G/LTE network, future 5G services and fixed wireless access offering.

The combination is also expected to improve the efficiency of future network investment and generate capital and operating expenditure synergies.

"Uzbekistan is one of VEON's core growth markets, and this acquisition reflects our confidence in its digital future," said Kaan Terzioglu, Group Chief Executive Officer of VEON. "By combining complementary spectrum and network assets, we can deliver better connectivity and expand access to the digital services people and businesses use every day," he said.

Uzbekistan's Committee for the Development of Competition on July 16 approved a request by the largest shareholder of Uzbekistan's InfinBank and mobile operator Perfectum, Farkhod Mamadjanov, to acquire 50% of Rubicon Wireless Communication LLC, the parent company of mobile operator Perfectum.

VEON, headquartered in Amsterdam, provides connectivity and digital services to over 150 million connectivity and more than 228 million digital users. It includes Beeline Uzbekistan, which is wholly owned by VEON UZB Holding Ltd.

Unitel LLC has been operating under the Beeline Uzbekistan brand since September 2006.

Perfectum has been operating in Uzbekistan since 1995 and is a full-service operator offering mobile communications, home internet and CDMA.