VEON Welcomes Letter from its Shareholder Shah Capital, Reiterates Commitment to Shareholder Value Creation

Amsterdam and Dubai, 21 October 2024: 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 MSCI¹, 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.

About VEON
VEON is a digital operator that provides converged connectivity and digital services to nearly 160 million customers.  Operating across six countries that are home to more than 7% of the world's population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. VEON is listed on Nasdaq and Euronext. For more information visit: https://www.veon.com.

Disclaimer
This release contains “forward-looking statements”, as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and include statements relating to, among other things, VEON's strategy and value creation plans. Forward-looking statements are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.

Contact Information
Hande Asik
Group Director of Stratgy and Communication
[email protected]

¹ The use by VEON of any MSCI ESG RESEARCH LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of VEON by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI.