VEON to Acquire Uzbek Operator for $207 Million

en.Wedoany.com Reported - On October 19, international telecommunications group VEON announced the signing of an acquisition agreement to acquire 100% equity of Uzbek mobile communications operator Rubicon Wireless, which operates under the Perfectum brand, for total consideration of approximately $207 million. The consideration includes approximately $93 million in existing financial debt. Relevant regulatory approvals have been obtained, and closing is planned to be completed by the end of October.

Perfectum holds a total of 115 MHz of spectrum resources in the 850 MHz and 3800 MHz bands, and has built a 5G standalone communications network using Nokia equipment. Upon completion of the transaction, these spectrum and network assets will be incorporated into VEON's business in Uzbekistan, and are expected to increase the spectrum resources of its Beeline Uzbekistan by approximately 50%. VEON plans to use the additional spectrum to support capacity enhancement of its existing 4G network, 5G service deployment, and fixed wireless broadband access services.

Under the transaction arrangements, VEON will use existing cash resources to pay the acquisition consideration. Uzbekistan's competition authority has approved the acquisition of Perfectum's operating entity by VEON's UAE-registered VEON UZB Holding, subject to operating conditions requiring Perfectum to maintain independent operations for three years after the acquisition, keep existing 5G fixed wireless access user tariffs unchanged for at least 12 months, and ensure average internet access speeds of no less than 300 megabits per second.

The regulatory conditions also include expanding 5G standalone services to other regions, safeguarding users' freedom to choose telecommunications operators, and protecting users' personal and commercial data. The acquirer may not force users to use Beeline or VEON's digital platforms, nor may it use user data to restrict market competition.