News
Aamir Ibrahim takes over as CEO of both companies following completion of financial transaction; legal merger due to be completed within six months.
The parent companies of Mobilink and Warid Telecom on Friday announced they have completed the transaction that will enable them to merge the two companies, consolidating the former’s position as Pakistan’s largest mobile operator.
A deal announced in November made provision for VimpelCom-owned Mobilink to acquire 100% of Warid’s shares, in return for Warid owner the Dhabi Group buying 15% of Mobilink’s shares, with Warid then to be merged into Mobilink. The companies did not place a value on the deal.
Those share transactions have now taken place, VimpelCom and the Dhabi Group confirmed.
Regulatory body the Pakistan Telecommunication Authority (PTA) approved the merger just over a month ago, subject to certain conditions geared towards protecting competition in the market.
Together the two operators had 50.1 million mobile customers at the end of May, according to the PTA, giving the combined entity a 37.5% market share; there are 133.5 million mobile customers in Pakistan.
The completion of the deal is "very positive news" for the Pakistan economy, Dhabi Group chairman Nahayan Mabarak Al Nahayan said, thanking the relevant authorities for supporting the 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," he said.
VimpelCom said the merged entity will benefit from its US$1 billion IT transformation project, announced last month. The upgrade of its BSS systems will enable it to roll out local products and services more quickly, particularly in the areas of mobile entertainment, communications, the Internet of Things (IoT) and mobile financial services.
"Through this, Pakistan’s digital development will be elevated to the next level, further reducing the digital divide," the telco said.
The integration of the two mobile operators will be overseen by a new CEO.
Mobilink chief executive Jeffrey Hedberg will step aside, effective immediately, handing the reins to Aamir Ibrahim, who currently serves as chief commercial officer and deputy CEO of Mobilink.
"I have worked closely with Aamir and the team over the last two years and as I hand over the baton, I have full confidence that Mobilink and Warid will grow from strength to strength," Hedberg said, of his replacement.
Al Nahyan becomes chairman of Mobilink, with Jon Eddy, VimpelCom’s head of emerging markets, serving as his vice chair. Mobilink finance chief Andrew Kemp also assumes the role of Warid CFO.
The legal merger of the two companies is expected to be completed within around six months. Mobilink and Warid will file a petition to the Islamabad High Court in order to commence the process of a legal merger in the near future.
