Official: Mobilink and Warid Merge into One Company

Mobilink and Warid are merging into one company, we have received the confirmation that we were looking for over several weeks now.

According to official statement issued by VimpelCom, both Warid Telecom and Mobilink will merge into one company with 45 million combined customers.

Our sources tell that signing ceremony has been completed and now both companies are going to hold a press conference in Lahore later today to announce the details.

Upon successful completion of the transaction, which may take up to one year, Mobilink’s CEO Jeffrey Hedberg will become the CEO of the combined business and Mobilink’s CFO Andrew Kemp will become the CFO of the combined function.

The board of the merged company will consist of seven directors, of whom six will be nominated by VimpelCom and GTH (Mobilink) and one nominated by the Dhabi Group shareholders.

A notice sent from Mobilink to Karachi Stock Exchange said that merged entity will have combined revenue of 1.4 billion dollars for 12 months till September 2015, while EBITDA margin of above 40%. It further said that the transaction is expected to create Capex and Opex synergies with a net present value of approximately USD 500 million.

Notice said that merged entity will have a strong financial profile with Pro Forma Leverage in terms of Net debt/EBITDA or around 1.8x upon signing, that will trend further downwards as synergies materialize.

Commenting on the agreement, Jean-Yves Charlier, Chief Executive Officer of VimpelCom, said:

“We are delighted to announce the agreement with the Dhabi Group shareholders today to combine our businesses in Pakistan.

With the addition of Warid to our already strong customer base at Mobilink, we will serve more than 45 million customers and offer a best-in-class mobile and high-speed data network – a key factor in the digital enablement of Pakistan’s economy.

This transaction follows a number of strategic milestones for the company, including our recent joint venture announcement with WIND and 3 Italia in Italy and the agreement to sell our operations in Zimbabwe.

This is yet another important step in our journey to continue delivering on our strategy to transform VimpelCom and improve our competitive position in our operating markets.”

Chairman of Dhabi Group, His Highness Sheikh Nahyan Mubarak Al Nahyan, said

“Creating the largest operator in Pakistan is a significant milestone for Mobilink and Warid but also for Pakistan as a whole.

Warid’s partnership with Mobilink will create value for all stakeholders and pave the way for exceptional and cost-efficient telecommunication services for customers.

Both parties bring their unique strengths to this merger. Warid, with its strong post-paid base and high quality 4G/LTE network will complement Mobilink’s position in the market.

We are very pleased to continue to contribute to the strengthening of the competitive landscape for the broader telecom sector and the overall economy of Pakistan. The transaction reaffirms my own and my fellow investors’ long-standing and continuing commitment to Pakistan.”

Additional details of the Transaction

  • As part of the Transaction, Mobilink will first acquire 100% of Warid’s shares in consideration, while Dhabi Group shareholders will get approximately 15% of the shares of Mobilink. This process may take up to six months from today and is subject to regulatory approvals.
  • After this Warid and Mobilink will merge into one company, that will require another six months to close and regulatory approvals.
  • After a four year lock-in period following the date of closing of the Acquisition Transaction, the Dhabi Group shareholders will have the option to put their shares of the merged company to VimpelCom/GTH, and VimpelCom/GTH will have the option to call the shares of the merged company held by the Dhabi Group shareholders, each at fair market value.

While announcing the merger, Jeffrey Hedberg, President & CEO Mobilink, sent following email to Mobilink employees:

Dear Colleagues,

When I joined Mobilink a year and half ago, I promised you that together we will do exciting things. The milestone that I am about to share with you is not just one of the greatest that the industry has ever seen but is more importantly a testament of the hard work that we have put in as a team.

I am pleased to announce that we have just reached an agreement with Dhabi Group to merge Mobilink and Warid Telecom, subject to approval from relevant authorities.

This transaction will be one of the first mergers in the telecommunication sector in Pakistan’s corporate history. It marks another key step in VimpelCom’s global strategy to transform the company.

What this merger will mean is that whether you are part of Warid or Mobilink you will all be part of the largest, the longest standing, the fastest and most importantly, the most preferred mobile operator for the people of Pakistan.

Our combined operations will serve 45 million mobile and broadband subscribers in Pakistan. I congratulate you all on this great achievement and for all the work you have put in.

Let us all cherish this milestone and continue to capitalize on the culture of performance and delivery with which Mobilink has become synonyms. Let us keep our customers at the center of everything we do, at all time, and let us focus on creating the best customer experience that Mobilink has been known for over the past two decades.

I am confident that as one team, we will continue to support each other in every way possible and make this transaction the most successful in history of telecom industry of Pakistan.

Here is one team, one spirt and one vision,

Have a great day everyone.

Regards,
Jeffery

Tech reporter with over 10 years of experience, founder of ProPakistani.PK


      • even warid was not able to provide LTE to all.. how will it be possible for mobilink with limited LTE bandwidth… :P

        • Warid was facing narrow spectrum problem due to voice and text services. now Mobilink will shift all Warid users voice and text data on their own spectrum and use their 3G and Warid lte spectrum only for data services. But due to huge database Mobilink have to deploy more cell sites in big cities like Karachi, Lahore, Faisalabad, Rawalpindi/Islamabad and Multan etc where large number of users connect on a single cell site (or use existing warid and mobilink cell sites by converting them both 3g and lte) to fulfill the speed demand.

      • Dont get surprise if one year after this merger Telenor and Mobilink will merge also as parent company of Telenor Pakistan Telenor norway has 43.0% shares in parent company of VimpelCom. 1 company with 78 million subscribers and 70% of market share.

      • Dont get surprise if one year after this merger Telenor and Mobilink also merge into 1 company as Telenor Pakistan’s parent company Telenor norway has 43.0% shares in parent company of Mobilink which is VimpelCom. 1 company with 78 million subscribers and 70% of market share.

          • Well the deal of selling shares of Telenor in VimpelCom still not made. May be shareholders of VimpelCom mutually decided before buying warid that they will merge all their businesses into one company as Telenor in future. I thought it like this because at the time of sale announcement telenor has 33% shares in VimpelCom in Oct but now they further purchased 305 000 000 preffered shares in VimpelCom and become partner of 43%. May be a fund to buy Warid.

          • Telenor has stake in vimplecom. Mobilink is owned by Gobal Telecom Holding LLC (Orascom) which is later owned by Vimplecom which is owned by (Atimo 47% and Telenor 43%) kaya ajeeb khichri bani hai.

            • From an internal source, Telenor Group has withdrawn its shares from Vimpelcom in light of controversy being established against VimpelCom’s operational strategy.

      • Well the tagline is Warid and Mobilink agreed to merge.
        But in reality it is Warid and Mobilink agreed to marriage.
        Lolz. crazy to see the anticipation.
        Warid walo tyar ho jawo. Aap ek bykar network py janay walay ho.

    • Telenor and Zong will survive in market due to large number of users and 3G for telenor and 3g/lte for zong.
      BUT END OF UFONE ERA …………………. RIP Ufone

      • lol wut?
        Ufone’s advertisement alone gives it the lead single handedly. They don’t need to be ‘the best’ to survive in this market.

          • Ugh! I like Ufone. Their voice quality is a lot better than Mobilink and Zong.
            I like Zong now due to their 4G speeds.
            You can keep your fortune telling to yourself and sell your bananas somewhere else.

              • Ugh! You consider yourself epitome of wisdom and all others are fools belonging to some other world.
                Tell me Mr Wise Man, what do we call that hole behind your back where sun does not shine?

                • I was talking about general perception of Ufone that you can experience here as well but i think you have taken your mind into your place you just mentioned above.

    • That means my beloved Warid quality will deteriorate badly. Just like Mobilink is at present. Warid has excellent voice quality and too good LTE.
      Mobilink has jittery voice and even worse 3G. Don’t know how they got good results in PTA survey.
      Bad, Really bad news for Warid guys. :(

      • What are you talking about? Mobilink’s quality has been top notch, right up with Warid and Telenor. Its Zong and Ufone who can’t offer the same level of network quality and reliability.

        • In the past 6 months Mobilink replaced all its high quality equipment from Ericsson with cheap chinese junk from Huawei and ZTE

          • Ugh idiot! I use Chinese Q-Mobile and I can guarantee you their smartphones are of high quality now. These days Prices are based upon brand name and not the quality of product. Pack your sh**t in a box and label it Apple Sh**t and it will sell like hot cake in high price.

            • I’m talking about the telecommunications equipment installed at the cell sites here, not your handheld device. Ericsson’s equipment and service was undoubtedly superior. Chinese just agree to everything the customer demands and then don’t deliver unlike Ericsson where the culture is to tell it like it is. Chinese are also a huge corrupting influence, wining and dining, offering bribes and prostitutes to mid level managers to get them to approve shoddy workmanship and low quality equipment.

              • Chinese this; chinese that? What are you a confirmed imbecile? These days every electronics product is coming from China to pakistan and everywhere else. Even high end equipment of “Ericsson” are now “made in china”.
                Being a muslim look what pakistanis are upto to “full time corruption” and being a stone worshipping fool chinese what they have done.

        • Dear brother, while I agree with your comment regarding Ufone, I completely disagree regarding Mobilink brother.
          You can’t even use Skype with all bars and H+ signals. Too bad.
          May be you are residing at a place where they have less users or something.
          Call drops are common. Voice is jittery.
          I left Mobilink in 2004 and then tried again in 2013 and now after 3G auction. Tried in Quetta, Lahore, Multan, Karachi. Trust me if you’re a Warid customer you’ll find a HUGE difference. Even Warid’s 2G is better & Smooth.
          Mobilink’s Internet is spikey. Tower handover is worse. During driving the voice disappears and call drops.
          Warid on the other hand is a total different story.
          I agree Warid has less coverage but where they cover, it’s like a blanket. Smooth and good.
          Mobilink towers are wide spread with grey and dark areas in between. They are covering just for the sake of coverage, not for the sake of quality.
          Terrible network. Severely lacking quality.
          This is 3rd time in 15 years I have tried and disliked Mobilink.
          Definitely a bad news.

          • I have been Mobilink user eversince and may be I will continue using it. However, I agree with you on certain point. Loved the your judgement where you said “they cover for sake of coverage not quality”

            Unfortunately my house is on that same grey zone that you talked about, between two towers, the voice quality and internet, nothing is stable. Voice is bad and it does not stay consistently on 2G or 3G, no matter which set you use. About 100 yards before and few of yards after my house, things are much better..

            So you are right, mobilink does not covered areas to give smooth quality all over.

  • Lol my warid sim already portin mobilink xD … Warid call rate are soo much high and quality is best … Mobilink quality is best and low rate …

  • Aplomb for Mobilink… I just quited Mobilink for its lack of LTE it turns out they love me!
    There taking over the company i moved to. ??

  • mobilink 3g is flop due to lowest speed & warid lte also flop . warid is already dead so mobilink death is near.

  • I myself have used mobilink 3G and believe me it’s always 7-10mbps/s…. So far both of these operators were the only quality providers in telecom industry…. Warid has been a class… Undeniable fact

  • Dhabi group is pulling from some other major markets as well.. not only pakistan. as for Mobilink not going for 4G license last year, an ace move from Vimpelcom fellas there… :D

  • The news has been announced by Mobilink at their offcial facebook page.
    But I have a question; Will Warid continue to work as a separate brand?

  • We are pleased to announce that Vimpelcom and Dhabi Group shareholders have agreed to combine their businesses, Mobilink & Warid in Pakistan. With the addition of Warid to our growing customer base, Mobilink will serve more than 45 million customers and offer a best-in-class mobile and high-speed data network – a key factor in the digital enablement of Pakistan’s economy.

  • Its basically Warid LTE + Warid Strong PostPaid Base + Mobilink 3G + Mobilink HD Calls + Mobilink Huge Customer Base

  • As part of the Transaction, Mobilink will first acquire 100% of Warid’s shares in consideration, while Dhabi Group shareholders will get approximately 15% of the shares of Mobilink. This process may take up to six months from today and is subject to regulatory approvals.

    After this Warid and Mobilink will merge into one company, that will require another six months to close and regulatory approvals

  • As per my technology sense, this merger will also pave the way for new telecom company as the competition will get low. Let’s see how much I am correct. By the way, I am a warid user and i cannot use Warid’s 4G in my iPhone so here i will have a chance to enjoy 3G. :)

    • Congratulation to you bro. everything same happened as we discussed earlier few weeks ago. now you will be able to use 3g as well. What happened with the speed of mobilink 3g and warid lte is a thing we have to discuss in future. Congo again

      • Bhai Jub Se Zong NE 2Gb Wala Packeg Dia Ha IskiSpeed Downloading Speed Pehly 5mb Tak Thi Ab Kam Ho K 2mb Se 3Mb Ho Gai Ha

        • Bhai hum to abhi b 30-40 MB use kar rahay hyn. But dont expect more than this speed from Mobilink after merger that you are experiencing on zong now

          • Buddy Main Blind Lover Nahi Agr Speed Achi Nahi Ho G To Jis Ki Ho G Wo Use Karain Gay
            Apke Utorrent Screen Shot Main Bhi 3mb Speed Show Ho Rahi Ha

  • Warid is the quality network and mobilink is not as much promising in that sense. I’m sad to listen this news and market will become more monopolistic.

  • Bad news for Zong

    1.) warid deprived Zong from “the first & only 4g network”
    2.) Then “only 3g+4g network”

    Now Zong have to change the tagline again. ;)

  • and what will be the fate of Warid numbers ported to other networks??? as other networks ported to Warid will be as merged network…

  • Now Game Starts between Russia (Mobilink) and China (Zong)
    Ufone may be got dead and may be Telenor also get merger into Ufone.
    After 6 months Telenor acquired 4G licence
    And A new company May be TurkCel is our fifth operator.

  • I am warid customer since May 2005 just few days after official lunch of warid telecom and I will remain until the end

  • Warid customers will now have to become members of the largest, inefficient, worst network of Pakistan with the worst customer service. Alas Warid u & ur excellent services will be missed.

  • Zong (Pakistan First 3G + 4G) Network
    Bht jal rahi ho gi China Mobile Company ki. Coz Mobilink begair 4G spectrum khariday hue kahe ga “Mobilink” Pakistan First 4G LTE Network :D

    • How can Mobilink called itself 1st 4G LTE network? Zong first launch 4G LTE in Pak. And due to some license limitation issues Warid was not able to associate word 4G with itself and they always named themselves as Warid LTE not Warid 4G (No matter its same technology) and nor Mobilnk will be able to use word 4G but Mobilink can call itself 3g+lte. Zong is using 4G LTE as it has license.

    • oh i forgot .arabs behind ufone too….same as warid. arabs are not good at business i.e wateen ptcl,ufone ans warid.

  • Warid got 3G, Mobilink 4G = WarLink
    Let’s see how they loot us :D, sb dost dua kijye ga for Warid Users including me (have 15+ Warid connections, family members)…

  • That means my beloved Warid quality will deteriorate badly. Just like Mobilink is at present. Warid has excellent voice quality and too good LTE.
    Mobilink has jittery voice and even worse 3G. Don’t know how they got good results in PTA survey.
    Bad, Really bad news for Warid guys.

  • This is horrible news. Warid and Mobilink have seperate teams all over the country. Their vendors (Ericsson, Huawei, ZTE) have seperate teams. Their fueling, maintenance, installation, dismantling is being done by seperate. The merger will literally make hundreds of thousands of people jobless

  • We need more mobile operators in Pakistan after this merger.
    Please Govt launch a new auction to provide these companies
    Vodaphone (UK) 2nd
    Turkcel (Turkey) 26th
    Orange (France) 11th
    and MegaPhone (Russia) 27th

    For God Sake Do it


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