Transaction between Mobilink and Warid merger is finalized
The VimpelCom, Global Telecom Holding (GTH), together with Warid Telecom Pakistan and Bank Alfalah (Dhabi Group shareholders), has announced the completion of the transaction today to merge Pakistan Mobile Communications Limited (Mobilink) and Warid Telecom (Warid), creating Pakistan’s next generation digital telecommunications provider.
High-speed mobile communication along with best-in-class digital mobile network will benefit a whopping number of 50 million users in Pakistan. Mobilink announced the completion of its merger after all the regulatory approvals.
A press statement was also released by the companies in which everything was stated in black and white. According to the excerpt from the press release, it was specified that the joint entity of Mobilink and Warid will be the leading telecommunication provider of 2G, 3G and LTE service in Pakistan. Besides that, the joint venture will also be providing higher quality national voice and data coverage, faster downloads, and a wider portfolio of products and services.
Chief Executive Officer of VimpelCom, Jean-Yves Charlier, stated that:
“VimpelCom continues to make significant progress against its transformation program. This market consolidation represents a further step in our strategy to strengthen our position in the markets in which we operate. As the VimpelCom Group focuses on an ambitious digital transformation, we are investing in revolutionizing our technology core and product portfolio. We look forward to bringing innovative new products and services to our customers in Pakistan.”
Chairman of Dhabi Group, His Highness Sheikh Nahayan Mabarak Al Nahayan, said:
“I am very happy that we have arrived at this milestone today which marks a unique moment for the Pakistan telecom sector. It is very positive news for Pakistan’s economy. The Dhabi Group remains committed to Pakistan and its economic progress and I would like to thank all the relevant authorities for their support in closing this transaction. I am confident that together, the combined businesses will continue to deliver excellence to their customers while contributing positively to the business environment in Pakistan”
Mobilink now enters into the major phase of its transformation after the completion of the merger transaction. Chief Executive Officer (CEO), Jeffrey Hedberg, will hand over the CEO role of Mobilink and Warid to Aamir Ibrahim who is currently serving as Chief Commercial Officer and Deputy CEO of Mobilink. Along with the support from the world-class team from the VimpleCom group, Aamir Ibrahim will plan and executive the integration of Mobilink and Warid.
The legal merger of the two companies, which will result in one merged legal entity having the same board and management, is expected to be completed within six months, subject to the fulfillment of the required legal processes in Pakistan. Mobilink and Warid will shortly file a petition to the Islamabad High Court in order to commence the process of legal merger.
VimpleCom’s $1 billion investment will help Mobilink and Warid into building one of the largest and most ambitious IT infrastructures in the industry. The Group’s new digital systems will enable faster roll-out of new local products and services, particularly in the areas of mobile entertainment, communications, and mobile financial services. Pakistan’s digital development will be raised to the next level, further reducing the digital divide through this implementation.
VimpelCom, GTH and Dhabi Group announced the agreement to combine their Pakistan telecommunication businesses on 26th November 2015. The completion of the transaction follows regulatory approval from all the relevant authorities and the subsequent exchange of shares. Mobilink has completed the acquisition of 100% of Warid’s shares, and the Dhabi Group Shareholders have acquired 15% of the shares of Mobilink.