Pakistan's Mobilink will merge with Warid Telecom to create a Pakistan's largest operator with a combined 45 million customers.
Mobilink parent company Vimpelcom has reached an agreement with Warid's owners Global Telecom Holding and the Dhabi Group covering a share-swap merger, the companies announced.
As part of the agreement, Mobilink will acquire a 100% stake in Warid Telecom in exchange for Warid shareholders receiving a 15% stake in Mobilink. Subject to regulatory approval, the deal is expected to be complete within six months.
The companies had a combined revenue of $1.4 billion for the 12 months ending in September 2015, and the merger is expected to create capex and opex synergies worth around $500 million.
The combined company will be governed by a board consisting of seven directors, including six nominated by VimpelCom and Global Telecom Holdings and one nominated by Dhabi Group shareholders. Mobilink's current CEO Jeffrey Hedberg will become CEO of the new company.
“Creating the largest operator in Pakistan is a significant milestone for Mobilink and Warid but also for Pakistan as a whole,” Dhabi Group chairman His Highness Sheikh Nahyan Mubarak Al Nahyan said.