Veon proposes Teletalk tie-up, seeks to acquire Nagad

Global digital operator Veon has expressed interest in exploring a strategic combination with Bangladesh’s state-owned mobile operator Teletalk as part of a broader plan to expand its digital footprint and investments in Bangladesh.

In a letter sent to Prime Minister Tarique Rahman recently, Veon said it was prepared to significantly increase its investment in Bangladesh and sought discussions on potential collaborations involving strategic public assets.

The proposal includes a possible strategic combination with Teletalk Bangladesh Limited and the acquisition of Nagad from the Bangladesh Post Office.

“Veon and Banglalink believe Bangladesh has the potential to become one of Asia’s most dynamic digital economies and are committed to supporting that vision,” said Johan Buse, CEO of Banglalink, a wholly owned subsidiary of Veon.

Veon said it was prepared to significantly increase its investment in Bangladesh and sought discussions on potential collaborations involving strategic public assets

“Building on more than $2.5 billion invested in Bangladesh over the past 21 years, we are keen to make significant investments in the near term, supported by a conducive and predictable regulatory environment,” he said.

“As a digital operator, we are focused on making lives better and simpler by expanding access to connectivity, digital services, affordable devices, and innovative solutions in areas such as healthcare, education, and agriculture, helping accelerate digital transformation and sustainable economic growth,” said the CEO of the Banglalink, which currently has 3.74 crore customers as of April.

Veon’s proposal comes as several other foreign companies -- including Malaysia’s Axiata, as well as Japanese and South Korean firms -- have also expressed interest in investing in or acquiring a stake in Nagad, according to sources.

Several local companies have also explored potential acquisition opportunities.

The mobile financial service provider’s large customer base and significant transaction volume have made it a lucrative target for both domestic and international investors.

However, no company has submitted a formal financial offer so far. Sources said uncertainties surrounding Nagad’s ownership structure, allegations of illegal e-money creation, and its substantial liabilities have discouraged both local and foreign investors from making concrete proposals.

Veon said it has already applied for a digital bank licence and received a no-objection certificate from Bangladesh Bank to operate as a payment service provider.

Building on its digital banking and mobile financial services experience in multiple markets, the company said it was ready to deploy more than $100 million in immediate investment in Bangladesh.

“Veon stands ready to significantly expand its investment in the country and partnership with the government,” the company said in the letter.

The Dubai-headquartered company argued that a partnership involving strategic public assets could help strengthen national digital infrastructure and accelerate innovation.

“We believe Veon’s digital-first operating model, execution capability and capital strength can deliver measurable improvements in service quality, financial inclusion and long-term sector sustainability,” it said.

Veon operates in Bangladesh through Banglalink and says it has invested more than $2.5 billion in the country over the past two decades.

According to the letter, the company has also contributed over $4 billion to the national exchequer during the period.

The company said a stable and investment-friendly policy environment would be essential for unlocking the next phase of digital investment, innovation and job creation in Bangladesh.