The planned merger of Axiata's Robi and Airtel Bangladesh has been approved by the high court, paving the way for the formation of country's second largest mobile operator, the Daily Star reports. Robi and Airtel opened talks on a possible merger in August 2015, and in January this year signed a final agreement.
To complete the merger they will be required to pay BDT 1 billion in merger fees and BDT 330.8 million for each megahertz of spectrum at Airtel to be used by the acquiring company Robi for the next four years, the Bangladesh Telecommunication Regulatory Commission said. The court also ordered the companies to allow a voluntary retirement scheme for employees not willing to join the new group.
The new name going forward for the company will be Robi. With Airtel's around 10 million customers, Robi will pass Banglalink to become second in the market with almost 28 million customers, still half the size of market leader Grameenphone. Upon completion, Axiata will hold a 68.3 percent controlling stake in the combined entity, while Airtel will own 25 percent. The remaining 6.7 percent stake will be held by the existing shareholder NTT Docomo of Japan.
