Amsterdam-based telecoms firm Veon announced the sale of its 50.1 percent stake in Beeline Kyrgyzstan to CG Cell Technologies.

Kyrgyzstan – Getty Images

Veon said the sale is part of its strategy to simplify the group’s structure and focus on its large markets where it can create scale.

Despite revenue growth in 2023, Beeline Kyrgyzstan was the lowest contributor to the Veon group, compared to Veon’s operations in Ukraine, Pakistan, Kazakhstan, Bangladesh, Uzbekistan, and Georgia.

No specific financial details were disclosed. However, Veon said the transaction values Beeline Kyrgyzstan at almost three and a half times the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA).

Kaan Terzioğlu, Veon group CEO, said: “Over the past two years, we have transformed Beeline Kyrgyzstan into a winning operation, with seven consecutive quarters of double-digit revenue growth, high penetration and quality of 4G services, and solid foundations in digital offerings.”

Terzioğlu added that he was ‘proud’ of the work Beeline accomplished under the leadership of Andrey Pyatakhin, CEO of operations in Kyrgyzstan.

CG Corp Global said: “We are excited to cooperate with our partners in this joint venture as we continue to develop this business, ensuring that customers continue to get the modern, high-quality, and reliable connectivity and digital services they have come to expect.”

CG Cell Technologies, headquartered in Dubai, is a subsidiary of the international conglomerate CG Corp Global.

Originally founded in Russia, Veon is now headquartered in Amsterdam. The company exited the Russian market in October in the wake of Russia’s invasion of Ukraine. The company currently has operations in Bangladesh, Kazakhstan, Pakistan, Ukraine, and Uzbekistan.