Amsterdam-listed mobile operator Veon said on Thursday it would sell its Russian business, Vimpelcom, to senior members of the Vimpelcom management team, led by CEO Aleksander Torbakhov, for 130 billion roubles ($2.2 billion)
Veon operates the Beeline brand through Vimpelcom in Russia, a market that accounts for about half of group revenue. Veon also operates Beeline in Kazakhstan and Kyivstar in Ukraine.
Veon, which expects the transaction to be complete by June 1, joins a growing list of Western companies that have sold assets in Russia since Moscow sent tens of thousands of troops into Ukraine on Feb. 24.
Veon said the management buyout of Vimpelcom implied an expected enterprise value of approximately 370 billion roubles. Though Veon is selling at a discount, the transaction represents a relatively rare example of money changing hands between parties as companies race to exit Russia.
Japan’s Nissan took a $687 million loss in handing over its business in Russia to a state-owned entity for one euro, mirroring an earlier move by Renault which sold its majority stake in Russia’s Avtovaz for one rouble. Many companies have not disclosed the price of their divestments.