VEON and Summit complete USD 100m deal for Bangladesh towers portfolio

VEON Ltd. announces that, further to the announcement dated 15 November 2023, and the legal transfer of towers in December 2023 following the receipt of all regulatory approvals, its wholly owned subsidiary Banglalink has completed the sale of part of its tower portfolio in Bangladesh to Summit Towers Limited for a consideration of approximately BDT 11 billion (c. USD 100 million).

With this transaction, Summit Towers Limited, a subsidiary of Summit Communications Group, the largest Telecommunications Infrastructure Company in Bangladesh, took ownership of 2,012 Banglalink towers. Under the terms of the Master Tower Agreement between the parties, Banglalink secures the provision of tower infrastructure services for an initial period of 12 years, with potential extensions.

“This sale marks an important milestone for us, as we continue to successfully execute our strategy to transform VEON into an asset-light digital operator. This is a first and an important step in crystalizing the value of our infrastructure assets in Bangladesh, enabling Banglalink to focus on delivering value as a digital operator that offers its customers locally relevant digital services,” said Kaan Terzioglu, Group CEO of VEON.

“Over the past year and a half, we have successfully doubled our network capacity and extended coverage nationwide, prioritizing widespread 4G accessibility for all. This strategic expansion has significantly enhanced the quality of services offered to the people of Bangladesh. Our collaboration with Summit Towers allows us to take the next step in the efficient management of infrastructure resources in line with our asset-light strategy. This will enable us to focus more on our services and digital innovation such as Toffee and MyBL,” said Erik Aas, CEO of Banglalink.

“We are delighted to have successfully finalized the deal within the mutually agreed timeline. Acquiring the ownership of the towers in this deal adds to our portfolio of 4,500 towers in the Bangladesh market. This, coupled with a fiber optic network spanning over 55,000 km and the upcoming submarine cable, will position Summit Communications Group as the country’s primary end-to-end digital infrastructure provider, fulfilling a dream set over a decade ago,” said Muhammad Farid Khan, Chairman of Summit Communications Limited and Summit Towers Limited.

The proceeds from the deal will primarily be used to fulfill Banglalink’s financial commitments and generate cost efficiencies, freeing up resources for the company’s digital expansion. In line with VEON Group’s asset-light strategy, VEON and Banglalink will continue to evaluate and pursue collaborative opportunities related to Banglalink’s remaining tower portfolio. Nomura International Plc, Allen Overy LLP and Dr. Kamal Hossain & Associates were the financial and legal advisors to Banglalink on this deal. Additionally, KPMG Bangladesh provided support in conducting due diligence and tax assessments.

CT Bureau