Despite seeing setbacks in Nepal, Chaudhary Group (CG), the nation’s largest conglomerate continues to reflect its ambitions in the telecommunication industry. In the latest development, CG has announced that it will buy 50% equity shares in a private telecom company called Beeline Kyrgyzstan. To be exact, the company bought the ownership of 50.1% indirect shares in the company from VEON Ltd.
The business house acquired the shares via its CG Cell Technologies Designated Activity Company which operates under CG Corp Global. Recently, CG lost its license for the rural telecom service in Nepal. However, the group remains focused on earnest investments in the telecom sector.
According to VEON’s latest financial report, Beeline Kyrgyzstan’s income before income tax and depreciation was $22 million. Based on its 50.1 percent share, its estimated value can be $37.5 million. VEON Capital still owns the remaining 49.9% shares in this company.
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CG delight over Beeline Kyrgyzstan shares purchase
Following the purchase decision of Beeline Kyrgystan shares, CG Corp Global expressed its delight in the joint venture with partners. The firm also ensured that it will continue to provide customers with modern, and high-quality services. “We are very pleased to become a major investor in the Kyrgyzstan telecommunications market with the purchase of the majority stake in Beeline Kyrgyzstan. We are excited to cooperate with our partners in this joint venture as we continue to develop the business, ensuring that customers continue to get the modern, high-quality, and reliable connectivity and digital services they have come to expect,” the company said in a statement.
Similarly, VEON Ltd. CEO Kaan Terzioglu stressed Beeling Kyrgyzstand’s consecutive positive financial gains over the years. He called the telco’s 4G services solid foundations for its digital offerings. Here’s his full statement: “Over the past 2 years, we have transformed Beeline Kyrgyzstan into a winning operation, with 7 consecutive quarters of double-digit revenue growth, high penetration and quality of 4G services, and solid foundations in digital offerings. I am proud of the work that the team has achieved under Andrey Pyatakhin’s leadership; and pleased to pass the baton to Chaudhary Group to develop Beeline’s work further and with greater focus, supporting the digital transformation of Kyrgyzstan.”
The share transaction between VEON and CG will now require regulatory approval to complete.
CG also owns a Moldovan telecom operator Moldcell after buying 100% of Telia Company’s shares back in February 2020. In Nepal though, the group launched CG Net after failing to obtain a proper telecom license to operate commercial services.
