Veon announced that it has received all necessary regulatory approvals for its strategic deal with Pakistan’s largest conglomerate, Engro, to merge and manage their telecom infrastructure assets in Pakistan.
The agreement, initially unveiled in December 2024, involves Veon’s subsidiary Pakistan Mobile Communications Limited (known as Jazz) transferring ownership of its infrastructure company Deodar to Engro Connect through a scheme of arrangement.
As part of the deal, Engro will pay Jazz US$188 million and assume responsibility for repaying Deodar’s intercompany debt of US$375 million. Despite the transfer, Jazz will continue leasing Deodar’s infrastructure nationwide to support its mobile voice and data services under a long-term partnership agreement.
Both companies have secured approvals from key regulators, including the Competition Commission of Pakistan, the Pakistan Telecommunication Authority, and the Islamabad High Court. The scheme of arrangement and related formalities are expected to conclude by June 2025.
Kaan Terzioglu, Veon Group CEO and chairman of Jazz’s board, highlighted the deal as a benchmark for efficient infrastructure investment in emerging markets. “This landmark agreement will accelerate Jazz’s evolution into an asset-light services company, unlocking growth opportunities for both Jazz and Engro in their core sectors, and bolstering Pakistan’s digital transformation,” he said.
Engro Holdings CEO Abdul Samad Dawood added that the investment in Deodar “reinforces telecom infrastructure as a strategic vertical for us. We are committed to expanding access, empowering communities, and future-proofing infrastructure that will support growth for generations to come.”
