Airtel, Axiata defer Bangladesh biz merger pact

Telecom firm Bharti Airtel and Malaysian firm Axiata have delayed the agreement for merger of their Bangladesh operations till September 26.

The merger of their Bangladesh business was earlier expected to be completed in the first half of this year.

Axiata Group Berhad and Airtel on January 28 had signed an agreement to merge their respective telecom subsidiaries — Robi Axiata and Airtel Bangladesh — in Bangladesh.

According to sources, the enterprise valuation of the merged entity is estimated to be $2 billion.

Upon completion of the merger, Axiata will hold 68.3 per cent controlling stake and Bharti Airtel 25 per cent, while the remaining 6.7 per cent will be held by the existing shareholder -- NTT Docomo of Japan.
 

Post-merger, the combined entity operating as 'Robi' will serve approximately 40 million customers.

Airtel had entered Bangladesh by acquiring 70 per cent stake in Warid Telecom in 2010. Subsequently, it picked up the remaining 30 per cent too in 2013.

The merger is expected to result in improving the cost of operations and business viability that will lead to greater returns to the shareholders.