VEON Announces Second Phase of USD 100 Million Share Buyback Program
On March 20, 2025, VEON Ltd. (Nasdaq: VEON), a leading global digital operator, made an announcement regarding the second phase of its previously declared share buyback program. This program, which is valued at USD 100 million, was initially announced on August 1, 2024.
Background
VEON is a multinational telecommunications company with operations in various countries, including Russia, Italy, and the Netherlands, among others. The Company’s business model is focused on providing digital services, including voice, data, and digital services, to its customers. The share buyback program is an initiative by the Company to return value to its shareholders and to optimize its capital structure.
Second Phase of the Share Buyback Program
VEON has now announced that it will commence the second phase of the share buyback program shortly. The Company did not disclose the exact timing or the number of shares to be repurchased during this phase. However, it did mention that the buyback will be conducted in accordance with the Company’s existing share buyback policy and applicable laws and regulations.
Impact on VEON Shareholders
The share buyback program is positive news for VEON shareholders as it indicates the Company’s confidence in its own stock. By repurchasing shares, VEON reduces the number of outstanding shares, which, in turn, can lead to an increase in earnings per share (EPS) and, potentially, a higher stock price. Furthermore, the repurchased shares can be used for various purposes, such as issuing them as part of employee compensation plans or as treasury shares to be held for future strategic initiatives.
Impact on the Global Telecommunications Industry
VEON’s share buyback program is not just significant for the Company and its shareholders but also for the global telecommunications industry as a whole. This initiative could potentially set a trend for other telecom operators to follow suit, given the positive impact it can have on earnings per share and stock prices. Additionally, it could lead to increased M&A activity in the sector as companies look to optimize their capital structures and create value for their shareholders.
Conclusion
VEON’s announcement of the second phase of its USD 100 million share buyback program is a positive development for the Company and its shareholders. By repurchasing shares, VEON is returning value to its investors and optimizing its capital structure. Furthermore, this initiative could potentially set a trend for other telecom operators to follow suit, leading to increased M&A activity in the sector and a potential boost to the global telecommunications industry as a whole.
- VEON announces second phase of USD 100 million share buyback program
- Repurchasing shares to return value to shareholders and optimize capital structure
- Positive impact on earnings per share and potential increase in stock price
- Potential trend-setter for other telecom operators and increased M&A activity
