Veon welcomed a letter from shareholder Shah Capital, which criticised the operator’s board for poor stock price performance, and agreed there is potential for improvement.
In a statement, Veon addressed Shah Capital’s grievances, which were outlined in a letter to its board of directors. The letter claimed Veon’s current stock price was underperforming and proposed a seven-step plan to increase its value by five times by 2026.
Shah Capital, which holds around 7% of Veon’s shares, is a long-term shareholder. Veon noted that its share value had doubled over the past two years, positioning it as a prime opportunity for investors seeking growth in frontier markets.
In response to the seven-step plan, Veon highlighted several efforts, including engaging with investors across Europe and the US, maximising the value of its units and assets (potentially through IPOs), and driving growth through its digital operator strategy.
Shah Capital also called for improved governance, to which Veon responded by pointing to recent structural changes, including moving its headquarters from Amsterdam to Dubai to be closer to its operating units, and consolidating its listing onto the Nasdaq after exiting the Euronext Amsterdam exchange.
“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 work to unlock Veon’s full potential,” the company said.
