VEON announces controversial $30 million share buyback program

On December 9, 2024, VEON Ltd., the global digital operator, announced the initiation of its first phase of a share buyback program totaling up to USD 30 million. This decision follows a broader plan to repurchase American Depositary Shares, with the entire program authorized for up to USD 100 million. The company believes its shares are currently undervalued based on its operational performance and strategic potential, thus reinforcing its commitment to optimizing shareholder value. Kaan Terzioglu, the CEO of VEON Group, expressed confidence in the company's growth trajectory. He highlighted that the buyback program demonstrates VEON's commitment to long-term value creation while adhering to a disciplined approach to capital allocation. The program aims to increase the overall financial strength of the company, allowing potential for future opportunities. The share buyback will be executed through the open market under a 10b5-1 plan with a registered broker-dealer, ensuring compliance with Rule 10b-18. Decision-making regarding the timing and specifics of the buybacks depends on liquidity conditions, market circumstances, and regulatory considerations. These factors played a significant role in approving the first USD 30 million phase of the buyback program and will influence subsequent phases. VEON's latest announcement aligns with previous statements made in August 2024, where the intent and reasoning behind the buyback were first articulated. This initiative reflects an ongoing strategy to maximize shareholder value in light of market perceptions and operational realities. Despite potential uncertainties in market conditions and liquidity factors, VEON's leadership maintains a forward-looking stance as it embarks on this significant value-enhancing project.