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Beeline

Veon Sells Tower Assets in Russia to Service-Telecom for $1 Billion

September 6, 2021, 12:56 (UTC+3)|
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Veon holding (the parent company of Russian telecom operator Beeline) announced the sale of its cellular towers in Russia to the Service-Telecom group of companies for $965 million (70.65 billion rubles).

The deal will include the National Tower Company, owned by Veon, and about 15.4 thousand antenna mast structures. According to the press service of Beeline, the deal requires approval from the Federal Antimonopoly Service (FAS), while its closure is scheduled on the fourth quarter of 2021.

After the deal is concluded, the operator will lease the towers from Service-Telecom. In accordance with the terms of the agreement, the first lease period will be 8 years. The terms of the deal also contain Beeline's obligations to order the construction of an additional 5,000 towers according to the build-to-suit model through 2029 inclusive.

In total, Veon owns 50 thousand towers, according to RBC. The reason for the sale of the infrastructure is to optimize the use of the towers, since the issue of coverage throughout the Russian Federation has been resolved, accorging to experts. After the sale is completed, equipment from several companies, including competing companies, may appear on the towers.

In August 2021, Kismet Capital Group, a Moscow-based private equity company, has sent an offer to Veon Ltd. to buy its cell towers in Russia.

Original (in Russian)

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