Global connectivity and internet services provider VEON Ltd. (VEON) recently announced the sale of its mobile network tower assets in Russia to Service-Telecom for about $970 million. The transaction is likely to close in the fourth quarter of 2021.
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The sale to Service-Telecom, which operates in Russia under the Beeline brand, in partnership with PJSC VimpelCom, involves 100% sale of National Tower Company, a subsidiary of VEON, which operates about 15,400 mobile network towers in Russia.
The CEO of Veon, Kaan Terzioglu, said, “Today’s transaction is a major step forward in realising the value of VEON’s infrastructure portfolio for our shareholders. Moreover, this transaction allows to release the capital to deleverage VEON’s balance sheet and invest in critical aspects of active network and digital opportunities while achieving more financial flexibility.” (See VEON stock chart on TipRanks)
Recently, Bank of America Securities analyst Cesar Tiron upgraded the stock to a Buy with a price target of $2.70, which implies upside potential of 28.6% from current levels.
Consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average VEON price target of $2.63 implies upside potential of 25.2% from current levels.
VEON scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 156.5% over the past year.
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