A PYMNTS Company

Pakistan: Mobilink, Warid announce country’s first telecom merger

 |  November 29, 2015

VimpelCom and its 51.9 percent-owned Global Telecom Holding unit are merging their Mobilink operations in Pakistan with those of Warid Telecom, creating a company with 45 million customers.

The deal is expected to create capital and operating expenditure synergies of about $500 million, the companies said in a statement on Thursday.

Mobilink Chief Executive Jeffrey Hedberg will become CEO of the combined business, whose board will consist of six directors from the VimpelCom and Global Telecom side and one from Warid’s parent Dhabi Group.

As part of the deal, Mobilink, which operates Pakistan’s largest voice and data network with over 8,500 cellphone sites, will first acquire all of Warid’s shares, while Dhabi shareholders will acquire approximately 15 percent of Mobilink shares, the statement said.

The transaction is expected to be completed within six months, subject to regulatory approval. Warid will then be merged into Mobilink.

Full content: Tribune

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.