By Gianluca Lo Nostro and Leo Marchandon
(Reuters) – Telecoms group VEON is moving forward with its plan to float its unit Kyivstar in the U.S., in a move that would make it the first Ukrainian firm to be listed in the United States.
Dubai-based VEON has signed a letter of intent with Cohen Circle to combine their businesses, with the aim of indirectly listing Kyivstar on Nasdaq, where the parent company also has its sole listing after delisting from Amsterdam in 2024.
VEON’s aim is to complete the listing of Kyivstar, Ukraine’s leading mobile operator, via a special purpose acquisition company (SPAC) by the end of the year, a single source familiar with the deal told Reuters.
A SPAC was chosen as it would be a simpler process than going through a standard IPO, the source added.
A definitive agreement with Cohen Circle, also listed on Nasdaq, is expected by the second quarter of 2025, VEON said in a statement.
The source said VEON had selected the U.S. over Europe and Asia, where it operates its fintech and telecom brands, because it is the world’s fastest-growing stock market and therefore the listing will open the doors to international investors.
The Ukrainian telecom market, a strategic sector often targeted by Russian hackers, has been opening up to international investments. Last September, French billionaire and Iliad founder Xavier Niel bought Lifecell, Ukraine’s third-largest mobile provider, for more than $500 million.
The planned U.S. listing follows Kyivstar’s partnership with Elon Musk’s Starlink last December to provide direct-to-cell satellite connectivity in the war-torn country later this year.
Ukrainian and U.S. authorities had been very supportive of the listing project, which is viewed as means to rebuild Ukraine’s telecoms infrastructure as well as its consumer and enterprise services, the source told Reuters.
VEON has pledged to invest $1 billion in Ukraine’s digital infrastructure by 2027.
(Reporting by Leo Marchandon and Gianluca Lo Nostro in Gdansk; Editing by Milla Nissi)
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