 "Airtel in talks to merge Bangladesh arm with Axiata Group unit")
Bharti Airtel and Axiata Group Berhad are in exclusive discussions to merge the operations of their subsidiaries in Bangladesh — Robi Axiata and Airtel Bangladesh, according to a statement from Bharti Airtel.
Airtel is looking to be a strategic minority partner in the Bangladesh unit.
However, there is no clarity if this discussion would lead to the execution of binding definitive agreements between the two.
This announcement is to facilitate the on-going discussions and exchanges of information between the two firms including, but not limited to, discussions with the relevant regulatory authorities, the statement said.
In July this year, Bharti Airtel entered into a pact with France’s Orange for selling its four subsidiaries in Africa region. Although the company claimed it had no plans of exiting Africa and would continue to invest in the region, analysts are of the view that Bharti might exit some countries in Africa. Airtel has operations in 17 markets there.
Airtel Bangladesh has a subscriber base of nine million, while Robi Axiata has 28 million subscribers. After the proposed merger, the combined entity will become the second-largest telecom service provider in Bangladesh in terms of number of subscribers.
Robi Axiata is currently the third largest telecom operator in Bangladesh, followed by Airtel. There are six operators in Bangladesh with Grameenphone leading the list.
An Airtel spokesperson said, “We remain committed to Bangladesh. The proposed merger, where we will be strategic minority partner, will combine the strengths of both companies to create the second largest mobile operator in Bangladesh with 37 million customers. This will lead to greater industry stability and translate into affordable and innovative products and services for customers through continued investments.”
The spokesperson added that the company would work towards maximising shareholders’ value, “whether it is by way of growing business to the next level by ourselves or by way of restructuring the portfolio including mergers and acquisitions”.
Earlier this month, there were reports about Airtel being in talks with potential buyers to sell its operations in Sri Lanka and Bangladesh.
In the quarter ending June 30, the company reported Rs 380 crore revenues from South Asia, which included Sri Lanka and Bangladesh, lower than Rs 430 crore a year ago on account of lower minutes of usages.
