VimpelCom, parent company of Pakistani mobile operator Mobilink , and the Abu Dhabi Group, a major sponsor of Warid Telecom, have reached an in-market consolidation by merging their respective subsidiaries, Daily Times reports, citing unnamed industry sources. According to these sources, the launch of 4G/LTE services made Warid an attractive target for VimpelCom. Thus VimpelCom agreed to acquire Abu Dhabi Group’s subsidiary, Warid Telecom.
“Mobilink’s bid for the merger and acquisition of Warid reached beyond the advance levels, as Mobilink had completed due-diligence of Warid two months ago, while the merger of both companies is expected to be announced officially in January 2016”, said sources involved in the transaction.
According to the same sources, Warid will remain a separate entity and the name of company would not be changed by VimpelCom initially. The Dubai-based company will keep a 20 to 30 percent stake in Warid Telecom. Warid currently has a large space available on its spectrum, thus Mobilink can shift its significant customer base to Warid’s network to upgrade service quality, the sources added.
These sources also said that, although the necessary arrangements and negotiations have almost been finalized between both parties, the sale purchase agreement will be signed by year-end.
