Mobilink/Warid complete share swap, start legal merger process

5 Jul 2016

Vimpelcom-owned mobile provider Mobilink and Warid Telecom, a subsidiary of Abu Dhabi Group, have completed the transaction to merge the respective businesses. The transaction, which was announced in late November 2015, saw Mobilink acquire 100% of the shares in Warid, whilst Abu Dhabi Group shareholders acquired a 15% stake in Mobilink. The legal merger of the two companies is expected to be completed within the next six months, and the two firms will shortly file a petition to the Islamabad High Court to begin the process of legal merger. In a statement, Vimpelcom noted that the transaction is expected to create CAPEX and OPEX synergies with a net value of around USD500 million, with an annual run rate of more than USD100 million of free cash flow improvements by year three.

Pakistan, Jazz, Warid Telecom (Jazz)