Veon welcomed a letter from its shareholder Shah Capital which hit out at the operator’s performance, agreeing with the investor that its current stock price has potential to improve while addressing certain points around governance and strategy.

In a statement, Veon responded to the letter written to the operator’s board of directors, in which Shah Capital expressed its disappointment at a languishing share price and made recommendations on how it can raise the value by 5X by 2026.

Veon stated Shah Capital is a valued long-term shareholder with approximately 7 per cent holdings and it welcomes the opportunity to address the issues highlighted.

The operator pointed out that its share value has doubled over the past two years, but added it shared the assessment about the potential to improve “as Veon positions itself as a leading opportunity for investors seeking growth in frontier markets”.

Addressing some other points made by Shah Capital, Veon said: engagement with investors across Europe and the US in particular remains strong; it continues to evaluate options “to crystallise the value of our business and assets we own”; and its digital operator strategy continues to evolve to provide services across a range of verticals.

Responding to the investor’s call for a better governance model, Veon said it continuously refines its structure, pointing to a strategy to move its headquarters to Dubai, consolidate trading on the Nasdaq and delist from Euronext Amsterdam.

“As always, Veon appreciates the constructive engagement from its shareholders. Our Board and Management will continue to maintain an open dialogue with all our shareholders as we look to unlock Veon’s full potential,” the company added.