International internet services and connectivity company VEON Ltd (NASDAQ:VEON) has emerged as one of the major movers this week so far and the rally in the stock continued on Thursday.
The stock managed to clock gains of 10% on Thursday and that took its gains for the week to as much as 15%. Yesterday, the stock soared after the company announced that it used its option to sell its entire 45.57% stake in Omnium Telecom Algérie SpA , its Algerian subsidiary company. The stake was sold to Algerian National Investment Fund, Fonds National d’Investissement. It is a significant development for the company and it seems that the market i quite happy with this disinvestment.
Since the company has exercised its option to sell the stake, it is going to trigger a process by way of which a third party is going to evaluate the fair market value of the stake. There is another reason why this is a major step from the company.
After selling of the stake in Omnium Telecom, the company will be able to making its operations far more efficient and will be able to devote its energies to the core markets in which it operates.
Market Reaction:
On Thursday, VEON stock jumped 11% to $2.03 with more than 36.14 million shares, compared to its average volume of 6.39 million shares. The stock has moved within a range of $1.8400 – 2.0400 after opening the trade at $1.86 Over the past 52-week, the stock has been trading within a range of $1.2000 – 2.0400.
 Stock Continues to Gain Momentum: Now What?){kind=link}