Amsterdam and Dubai - VEON Ltd. (Nasdaq: VEON; Euronext Amsterdam: VEON), a global digital operator (“VEON” or the “Company”), acknowledges the receipt of a letter from Shah Capital (the “Shah Letter”), a valued long-term shareholder holding approximately 7% of VEON’s shares, to the VEON Board of Directors (“VEON Board”).

The letter, which outlines Shah Capital’s views on VEON’s current valuation and suggests a seven-step strategic roadmap to enhance shareholder value, has been reviewed by VEON’s Board of Directors and the Management team. VEON thanks Shah Capital for their continued support and feedback; and welcomes the opportunity to address the issues highlighted in the Shah Letter, initially with a response from VEON Board to Shah Capital shared earlier today, and also in the longer term through continued communication.   

VEON appreciates Shah Capital’s insights and its recognition of VEON’s recent operational growth and the ongoing transformation of the business. While VEON’s share value has more than doubled over the past 2 years, the Company also shares Shah Capital’s assessment that its current share price indicates a potential for further improvement, as VEON positions itself as a leading opportunity for investors seeking growth in frontier markets.

VEON highlights the following points that have also been included in VEON Board’s response to the Shah Letter:

• Our engagement with investors, particularly across Europe and the US, remains strong. We are pleased to note the recent inclusion of VEON bonds in JP Morgan’s EM Corporate Indices (CEMBI, JACI, and JSEG). We continue to actively engage with various institutions to broaden coverage and enhance liquidity. Earlier this year, VEON also received an upgraded ESG rating of AA from MSCI , positioning us among the “Leaders” in our industry.
• Consistent with our announced strategy at our Capital Markets Day, we are evaluating options to crystallize the value of our businesses and the assets which we own, including through initial public offerings of some of our companies when relevant. Our goal is to ensure that the structuring and timing of any potential transaction is aligned with maximizing VEON shareholder value.
• Our Digital Operator (DO1440) strategy has been the main driver of our growth, helping us focus on growing our digital services portfolio, and enhancing customer engagement and value generation. As our DO1440 strategy evolves – now complemented by our AI1440 focus – our companies also expand their value offering as leading providers of of digital finance, healthcare, entertainment, education, and enterprise services, including as providers of software, cloud, big data and AI-based solutions.
• We continuously refine our governance structure with optimizations that drive efficiency, innovation, and enhanced shareholder value. Recent examples in this regard include our plans to move our headquarters to Dubai to closer proximity to our markets, and  the commencement of the process to consolidate our trading on Nasdaq Stock Exchange with our planned delisting from Euronext Amsterdam.

VEON remains committed to driving sustainable growth and creating long-term value for all shareholders. The Company is focused on continuing to execute its strategic initiatives, including advancing its strong operating outlook, optimizing its capital structure, and maintaining a disciplined approach to capital allocation. We are carefully considering the recommendations in the Shah Letter, which include suggestions on capital returns, improving market valuation, leveraging VEON’s strengths in emerging markets and further enhancing communication with the investment community.

As always, VEON appreciates the constructive engagement from its shareholders. Our Board and Management will continue to maintain an open dialogue with all our shareholders as we look to unlock VEON's full potential.