Veon Ltd has announced today that its wholly owned subsidiary Banglalink has completed the sale of part of its tower portfolio in Bangladesh to Summit Towers Limited for about Tk 1,100 crore or $100 million.

Veon, a global digital operator that provides converged connectivity and online services, first made the announcement on November 15 last year. The legal transfer of towers took place in December following the receipt of all regulatory approvals, it said in a press release.

With this transaction, Summit Towers, a subsidiary of Summit Communications, the largest telecommunications infrastructure company in Bangladesh, took ownership of 2,012 Banglalink towers.

Under the terms of the master tower agreement between the parties, Banglalink secures the provision of tower infrastructure services for an initial period of 12 years, with potential extensions.

"This sale marks an important milestone for us, as we continue to successfully execute our strategy to transform Veon into an asset-light digital operator," said Kaan Terzioglu, Group CEO of Veon, in the press release.

"This is a first and an important step in crystalising the value of our infrastructure assets in Bangladesh, enabling Banglalink to focus on delivering value as a digital operator that offers its customers locally relevant digital services."

Erik Aas, CEO of Banglalink, said over the past year and a half, the mobile phone operator has successfully doubled its network capacity and extended coverage nationwide, prioritising widespread 4G accessibility for all.

"This strategic expansion has significantly enhanced the quality of services offered to the people of Bangladesh. Our collaboration with Summit Towers allows us to take the next step in the efficient management of infrastructure resources in line with our asset-light strategy."

Muhammad Farid Khan, chairman of Summit Communications and Summit Towers, said: "We are delighted to have successfully finalised the deal within the mutually agreed timeline. Acquiring the ownership of the towers in this deal adds to our portfolio of 4,500 towers in the Bangladesh market."

This, coupled with a fibre optic network spanning over 55,000km and the upcoming submarine cable, will position Summit Communications as the country's primary end-to-end digital infrastructure provider, fulfilling a dream set over a decade ago, he said.

The proceeds from the deal will primarily be used to fulfil Banglalink's financial commitments and generate cost efficiencies, freeing up resources for the company's digital expansion.

Nomura International Plc, Allen Overy LLP and Dr Kamal Hossain & Associates were the financial and legal advisers to Banglalink on this deal. Additionally, KPMG Bangladesh provided support in conducting due diligence and tax assessments, the press release added.