By laksh5382
Shah Capital Management, one of Von Ltd’s shareholders, has urged the wireless operator to list Kyivstar, Ukraine’s biggest mobile company, and buy back shares to boost its stock performance.
According to an October 18 letter sent to Veon’s management, Shah Capital pushed for Kyivstar’s listing on Nasdaq, citing the potential of “being the only Ukrainian investment subject on the US equity market.” The North Carolina-based company owns about a 7% stake in Vons.
Vaughan operates in six markets including Ukraine, Pakistan and Bangladesh. It is in the midst of delisting its shares from Euronext Amsterdam, resulting in a sole listing on Nasdaq. The company also said this month that it was moving its headquarters from Amsterdam to Dubai to be closer to its key markets.
Shah Capital said Vaughan should “trade at a significantly higher valuation than its emerging market telecom peers.” The firm also suggested Vaughan publicly list its Pakistani unit Jazz or digital financial services provider JazzCash in Karachi or Dubai.
Vaughan said he agreed with Shah Capital’s assessment that its current share price indicates the potential for further improvement. “We are evaluating options to realize the value of our businesses and our assets, including, if relevant, an initial public offering of some of our companies,” it said in a statement on Monday.
Chief Executive Officer Kan Terzioglu told Bloomberg News in January that Von is considering a listing for its unit Kyivstar, Ukraine’s largest mobile operator. He identified Kiev, Warsaw and London as possible locations for the IPO as soon as next year.
The company is also evaluating an IPO for Jazz and will make a decision within a year, Terzioglu said in a separate interview with Bloomberg in August.