A global provider of connectivity and internet services has announced its intention to move its group parent company to the United Kingdom, replacing a company incorporated in Bermuda.

Veon Ltd, which is listed on the Nasdaq and Euronext Amsterdam exchanges, said a newly formed UK incorporated public limited company was to be the top holding company of the Veon Group.

The company said it was expected that the new UK parent would replace island-based Veon Ltd as the group’s ultimate parent company by way of a Bermuda court-approved scheme of arrangement.

The proposal places the company in a jurisdiction with high standards of corporate governance and a strong and transparent legal framework that is close to its operational headquarters in Amsterdam, the company said.

It added that the change of the place of incorporation of the top holding company was expected to enable Veon and its operating subsidiaries to operate more effectively across its markets, to best position the Veon Group for the future.

It is expected that such change will also provide the company with the necessary flexibility regarding current and future tightening of regulatory requirements in many of its markets of operation, including Russia, which recently introduced a new law introducing certain conditions for companies participating in Russian state and municipal procurement tenders or contracts.

Veon Ltd said it would issue a notice to convene a general meeting of its shareholders to seek their approval for the proposed move and intended to apply for approval of a scheme of arrangement from the Bermuda Supreme Court.

Gennady Gazin, Veon's chairman, said: "Establishing our new group parent company in the United Kingdom is another positive step forward as we continue to evolve our group governance.

“This is particularly appropriate given the international nature of Veon and the current climate of tightening regulatory requirements across the globe."

Veon Ltd, an exempted company limited by shares, was registered in Bermuda on June 5, 2009.