VEON Ltd., the Netherlands-based owner of Banglalink, announced on Wednesday that its subsidiary, Banglalink, has entered into an agreement to sell part of its towers to Summit Towers Limited.
The deal, worth BDT 11 billion, or equivalently USD 100 million, includes a long-term service partnership with Summit Towers, said a VEON statement in Amsterdam.
So, more than 2,000 towers—about one-third of Banglalink’s tower portfolio—will be transferred to Summit Towers, a company majority-owned by Summit Communications, a leading infrastructure group.
The closing of the transaction is subject to regulatory approvals from the Bangladesh Telecommunication Regulatory Commission. The proceeds from the sale will primarily be used to service Banglalink’s financial commitments and generate cost efficiencies while freeing up resources for the company’s digital expansion.
The VEON statement noted that since 2021, the company has defined its value creation strategy around three pillars: asset-light business model and value crystallization of tower assets; sustained growth in core business with the digital operator strategy; and growth in adjacent markets, including financial services, entertainment, education, and healthcare, with high-potential digital products.
“Today’s agreement marks a milestone, ensuring efficient use of resources not only for Banglalink but also for Bangladesh as a whole. This deal will enable us to focus on our core business as the leading digital operator in the country and continue addressing the unmet demand in entertainment, education, healthcare, and financial services,” said Kaan Terzioglu, Group CEO of VEON.
Muhammad Farid Khan, Chairman of Summit Communications Limited and Summit Towers Limited, said, “This strategic deal is a prelude to greater cooperation between Banglalink and Summit, the largest integrated telecommunications infrastructure company in Bangladesh. The future is ours to grow together, and with support from VEON, we believe that our collaboration will go beyond the boundaries of Bangladesh into the global arena, setting an example in the region.”
Erik Aas, CEO of Banglalink, said their company had been successfully transforming into a nation-wide digital operator with internationally recognized high-quality 4G connectivity and leading digital services such as Toffee and MyBL.
“Our partnership with Summit Towers enables us to focus our resources on our digital offerings, bridging the digital divide for all and providing an outstanding customer experience to the people of Bangladesh,” he added.
Nomura International Plc, Allen Overy LLP, and Dr. Kamal Hossain & Associates work as financial and legal advisors to Banglalink, and also to this deal.