CG Cell Technologies DAC Terminates Acquisition of Beeline Kyrgyzstan Stake from VEON Ltd.

CG Cell Technologies DAC has terminated its acquisition of a 50.1% stake in Beeline Kyrgyzstan from VEON Ltd. for $32 million. The deal, which valued Beeline Kyrgyzstan's business at 3.4x 2023 EBITDA, was subject to regulatory approvals and was signed on March 26, 2024. The termination of the acquisition was announced on August 13, 2025.

VEON Ltd. (Nasdaq: VEON) has completed the sale of its 50.1% indirect stake in Beeline Kyrgyzstan to Eldik Bank, a state-owned financial institution. The transaction was finalized on August 13, 2025, following receipt of all necessary regulatory approvals. This sale is part of VEON's strategy to simplify its group structure and focus on countries with larger populations and opportunities for scalable digital businesses.

The sale was executed through Menacrest AG, the parent company of Sky Mobile LLC, which operates under the Beeline brand in Kyrgyzstan. Following VEON's initial intent to sell its stake to CG Cell Technologies in March 2024, the Government of the Kyrgyz Republic exercised its right of first refusal, designating Eldik Bank to acquire 100% of Sky Mobile LLC for and on behalf of the Government. Eldik Bank paid the full transaction value upon completion.

Kaan Terzioglu, VEON Group CEO, commented, "The sale of our Kyrgyzstan operations marks another important step in VEON’s portfolio optimization. Beeline Kyrgyzstan has excelled in expanding 4G coverage and advancing our digital operator model, and we are confident this exceptional team will continue to thrive under Eldik Bank’s ownership. We thank our joint venture partner, Verny Capital, and the Government of Kyrgyzstan."

The divestment aligns with VEON's strategy to simplify its group structure and optimize its portfolio, focusing on markets with larger populations and opportunities for scalable digital businesses. VEON is a Nasdaq-listed digital operator that provides converged connectivity and digital services to over 160 million customers. Operating across five countries that are home to more than 6% of the world’s population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth [1].

References:
[1] https://www.globenewswire.com/news-release/2025/08/13/3132289/0/en/VEON-Completes-Sale-of-Beeline-Kyrgyzstan.html
[2] https://www.stocktitan.net/news/VEON/veon-completes-sale-of-beeline-viqwjfk14m09.html