Parent companies of Mobilink and Warid Telecom, Vimpelcom and Dhabi Group have reached a merger agreement that will see the creation of a combined entity which will be serving 45 million customers. As part of the transaction, Mobilink will first acquire 100% of Warid’s shares followed by Dhabi Group shareholders acquiring approximately 15% of the shares of Mobilink. The transaction is the first merger in the mobile telecommunications market in Pakistan.
The merger is expected to create Capex and Opex synergies with a net present value of approximately USD 500 million. The combined revenue of both companies for the 12 months to September 2015 was USD 1.4 billion, according to a statement by Vimpelcom.
Upon successful completion of the transaction, Mobilink’s CEO Jeffrey Hedberg will become the CEO of the combined business and Mobilink’s CFO Andrew Kemp will become the CFO.
Jean-Yves Charlier, Chief Executive Officer of VimpelCom
With the addition of Warid to our already strong customer base at Mobilink, we will serve more than 45 million customers and offer a best-in-class mobile and high-speed data network – a key factor in the digital enablement of Pakistan’s economy.
Chairman of Dhabi Group, His Highness Sheikh Nahyan Mubarak Al Nahyan
Warid, with its strong post-paid base and high quality 4G/LTE network will complement Mobilink’s position in the market.
