VEON has announced its intention to move its group parent company to the United Kingdom, with the introduction of a newly formed UK incorporated public limited company as the top holding company of the VEON Group (the “new UK Parent Company”). It is expected that the new UK Parent Company will replace VEON Ltd. (a Bermuda incorporated company) as the VEON Group’s ultimate parent company by way of a Bermuda court-approved scheme of arrangement.
Following the exercise of the PUT option for our stake in Algeria on 1st July 2021, the Algerian business will, in line with the IFRS 5 requirements, become a discontinued operation, and will be accounted for as “Asset held for sale”.
This will imply that its operations will not contribute to the base performance of VEON for both the current and prior year, and from the balance sheet perspective, it will be measured at the lower of the carrying amount of the discontinued business and its fair market value less costs to sell. Any deviation from this value in respect of the final valuation would result in a gain/loss, which would be accounted for as a profit/loss from discontinued operations. The discontinued classification under IFRS means that results of discontinued operations will be presented separately in current and prior year income statements and will have no impact on prior year balance sheet amounts.
On 1 December 2021 VEON announced the successful conclusion of the transaction for the sale of its Russian tower assets to Service-Telecom.