The Veon Group has announced that its partner in Pakistan, the Dhabi Group, has exercised its put option to sell Veon its 15 percent stake in Pakistan Mobile Communications Limited (PMCL). This will give Veon 100 percent ownership of Jazz, the largest mobile operator in Pakistan.
The transaction still requires an independent valuation to determine the fair value of the shareholding, but Veon expects to complete the deal before year-end. Full beneficial ownership of Jazz is expected to simplify and streamline governance over its Pakistani assets, as well as give it the full value of dividends paid by PMCL.
The put option is presently reflected in Veon Group’s accounts as a liability over a non-controlling interest, the value of which is reappraised on a quarterly basis.
