In a significant development for Ukraine’s telecommunications sector, VEON’s plans to list Kyivstar on the NASDAQ stock exchange have attracted considerable attention from international investors and market analysts. The move could mark a pivotal moment for both the company and Ukraine’s presence in global financial markets. In an exclusive interview with Mediasat.INFO, Himanshu H. Shah, Managing General Partner & Chief Investment Officer at Shah Capital Investment, shared his expert perspective on Kyivstar’s current position, recent corporate governance changes, and potential market valuation.
- How does Shah Capital view the current situation surrounding Kyivstar? In particular, is there concern over the potential for a raid—an attempt to illegally seize assets under the guise of state interests?
SC/HS: Stable to Improving. Kyivstar’s help all around including political insights should be more appreciated. Helsi’s contribution to well-being of Ukrainians should be of notice as well. Western investors tremendously values Government consistency and contractual obligations being sacrosanct are always rewarded well.
- What is Shah Capital’s assessment of Mike Pompeo’s recent appointment to Kyivstar’s board? Specifically, are there any insights into negotiations with authorities regarding Kyivstar?
SC/HS: Positive and more so with the Republicans in charge across in US.
- How would you evaluate Veon’s potential value in the event that the current crisis is resolved successfully, including the lifting of the asset seizure on Kyivstar?
SC/HS: Kyivstar is worth between US$2 to 3.5 billion assuming 4 to 7 times cash flow. By letting VEON list Kyivstar on NASDAQ, Ukraine will get more investment dollars and other Ukrainian companies can also be listed to raise money on US capital markets. Ukraine depends a lot on both IMF and other western private investors for its debt refinancing. By letting Kyivstar be listed in the US, the government also is sending a clear message that Ukraine policy is reliable and foreign investors rights will be protected.
