VEON Ltd. (Nasdaq: VEON), a telecommunications company operating in frontier markets, is poised to unlock significant value through the strategic business combination of its Ukrainian subsidiary, Kyivstar, with Cohen Circle Acquisition Corp. I (Nasdaq: CCIRU). This transaction will result in Kyivstar’s listing on the Nasdaq stock market under the ticker symbol “KYIV”, and marks a pivotal development for both VEON and one of the most iconic national brands in Ukraine.
Kyivstar’s Market Position and Digital Expansion
Kyivstar is Ukraine’s largest telecommunications operator, serving approximately 24 million customers across mobile and fixed communication services. It is the country’s #1 mobile operator and broadband provider, with an estimated 47% market share by number of mobile subscribers and an estimated 14% market share by number of broadband subscribers. Kyivstar has diversified its offerings beyond telco, adding high demand digital services such as Helsi (Ukraine’s largest digital health provider with 28 million registered patients) and Kyivstar TV (one of Ukraine’s leading digital TV platforms with 2 million active users). This expansion underscores Kyivstar’s commitment to enriching the lives of its customers while tapping into new revenue streams and driving financial performance.
The business is highly profitable with multiple levers for growth. In 2024, it generated $515M of Adj. EBITDA (56% margin). The double-digit growth in revenue (local currency) was driven by ARPU expansion, including increasing penetration of “multiplay” which is when users have Voice + 4G data >100 Mb and at least one digital app (Helsi, Kyivstar TV, My Kyivstar). Looking ahead, the business has substantial growth potential on the back of Ukraine’s post-war economic recovery and digital services expansion.
Strategic Business Combination and Nasdaq Listing
On March 18, 2025, VEON announced a definitive agreement with Cohen Circle Acquisition Corp. I, a special purpose acquisition company (SPAC), to facilitate Kyivstar’s public listing on Nasdaq. The transaction assigns Kyivstar a pro-forma valuation of approximately $2.2 billion and is anticipated to close in the third quarter of 2025, subject to shareholder approvals and customary closing conditions. Post-transaction, VEON will retain a minimum of 80% ownership in Kyivstar, ensuring continued influence over its strategic direction.
Unlocking Value
The Nasdaq listing of Kyivstar is expected to benefit VEON’s valuation through several key avenues:
- Enhanced Visibility and Investor Access: Listing Kyivstar on a major U.S. exchange provides international investors with direct exposure to Ukraine’s leading digital operator, potentially attracting new capital and broadening the investor base.
- Market Valuation and Liquidity: At $2.2 billion, Kyivstar is trading at 3.6x EV/EBITDA, well below its global peers’ average. A publicly traded Kyivstar offers transparent market valuation and liquidity, which can lead to a more accurate reflection of its intrinsic value, and benefit VEON’s overall valuation through its 80%+ ownership.
- Focused Investment in Growth: The capital raised through the public listing can be channeled into expanding Kyivstar’s digital services, network infrastructure, and customer acquisition strategies, driving future revenue growth.
Alignment with Ukraine’s Digital Infrastructure Development
VEON’s strategic move aligns with broader efforts to bolster Ukraine’s digital infrastructure. VEON, through Kyivstar plans to invest $1 billion in Ukraine over 2023-2027, aiming to enhance connectivity and support the country’s digital transformation. This commitment is further reinforced by partnerships with global technology leaders, such as the collaboration with Elon Musk’s Starlink to introduce satellite connectivity services in Ukraine by the fourth quarter of 2025.
Conclusion
The business combination and subsequent Nasdaq listing of Kyivstar represent a strategic maneuver by VEON to unlock value and reinforce its position in the digital telecommunications sector. By providing Kyivstar with access to international capital markets, VEON is not only enhancing its subsidiary’s growth prospects but also contributing to the advancement of Ukraine’s digital economy. Investors may view this development as a positive indicator of VEON’s commitment to innovation and market expansion, potentially leading to an enhanced valuation and shareholder value.
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