Banglalink, Summit reach Tk11bn deal for partial sale of towers portfolio

Banglalink, a subsidiary of global digital operator VEON, has entered into an agreement to sell part of its tower portfolio in Bangladesh to Summit Towers Limited for Tk11 billion - equivalent to roughly 100 million US dollar.

The deal includes a long-term service partnership between Banglalink and Summit Towers.

Upon the completion of the transaction, more than 2,000 towers, constituting about one-third of Banglalink's tower portfolio, will be transferred to Summit Towers. 

Summit Towers Limited is majority-owned by Summit Communications Group, a Bangladeshi infrastructure group.

VEON has been actively shaping its value creation strategy since 2021, focusing on three key pillars: an asset-light business model, sustained growth in its core digital operator business, and expansion into adjacent markets such as financial services, entertainment, education, and healthcare.

Kaan Terzioglu, Group CEO of VEON, expressed the significance of the agreement, stating, "Today's agreement marks a milestone, ensuring efficient use of resources not only for Banglalink but also for Bangladesh as a whole. This deal will enable us to focus on our core business as the leading digital operator of the country and continue addressing the unmet demand in entertainment, education, healthcare, and financial services."

The transaction with Summit Towers is in line with VEON's asset-light strategy and supports the Bangladesh Government's objective of maximizing the efficiency of infrastructure resources in the country.

Muhammad Farid Khan, Chairman of Summit Communications Limited and Summit Towers Limited, sees this deal as a prelude to greater cooperation between Banglalink and Summit, potentially extending beyond Bangladesh into the global arena. 

"With support from VEON, we believe that our collaboration will go beyond the boundaries of Bangladesh, setting an example in the region. We look forward to continuing to work together," Khan said.

Erik Aas, CEO of Banglalink, emphasised the company's commitment to digital transformation, saying, "Banglalink has been successfully transforming into a nationwide digital operator, with internationally recognized high-quality 4G connectivity and leading digital services. Our partnership with Summit Towers enables us to focus our resources on our digital offerings, bridging the digital divide for all and providing an outstanding customer experience to the people of Bangladesh."

The closing of the transaction is subject to regulatory approvals from the Bangladesh Telecommunication Regulatory Commission (BTRC).

The proceeds from the sale will primarily be used to service 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 are serving as financial and legal advisors to Banglalink in this deal.