Mobilink Warid Merger Gets Completed

VimpelCom and Dhabi Group today announced the completion of Mobilink and Warid merger transaction after which a merged company has emerged with around 50 million customers in the country.

Mobilink announced the completion of its merger after all regulatory approvals, that have been granted.

A press statement issued by the companies said that the combined Mobilink and Warid entity will be the leading telecommunications provider of 2G, 3G and LTE services in Pakistan, providing higher quality national voice and data coverage, faster downloads, and a wider portfolio of products and services.

With the completion of the merger transaction, Mobilink now enters the next major phase of its transformation and Chief Executive Officer Jeffrey Hedberg will hand over the CEO role of Mobilink and Warid to Aamir Ibrahim, currently Chief Commercial Officer and Deputy CEO of Mobilink.

Aamir Ibrahim Becomes the CEO and Chief of Mobilink and Warid

Aamir will drive forward and execute the Mobilink and Warid integration, supported by a world-class transformation team from the VimpelCom Group.

Mobilink’s turnaround over the past two years has shown significant improvements in service revenue growth (from -5% to +12% year on year), ARPU (from -11% to +15% year on year) and increased EBITDA margins (from -3 p.p. to +4 p.p year on year).

With effect from today, the Mobilink board is chaired by His Highness Sheikh Nahyan Mubarak Al Nahyan, with Jon Eddy as Vice Chairman and consists of five other directors nominated by VimpelCom and GTH.

After legal approvals, now both companies will work on integration to become one company and single brand. This could take 6 to 9 months

The Warid board is chaired by His Highness Sheikh Nahyan Mubarak Al Nahyan, with Jon Eddy as Vice Chairman and consists of three other directors nominated by VimpelCom and GTH.

On conclusion of the legal merger, the combined entity will have a single board and management structure.

As of today, Aamir Ibrahim becomes the CEO of both Mobilink and Warid. Andrew Kemp, the current CFO of Mobilink, will also assume the Warid CFO role.

Jeffrey Hedberg, Chief Executive Officer of Mobilink, said: “Today we are delighted to bring Mobilink and Warid together. Personally, it has been an exciting and rewarding journey and I will look back with deep pride at how our Mobilink team has worked tirelessly through this rapid turnaround to make the company so successful. The results speak for themselves. I have worked closely with Aamir and the team over the last two years and as I hand over the baton, I have full confidence that Mobilink and Warid will grow from strength to strength.”

Also Read: Mobilink-Warid Merger in Numbers

The legal merger of the two companies, which will result in one merged legal entity having the same board, and management described above, is expected to be completed within approximately six months, subject to the fulfilment of the required legal processes in Pakistan. Mobilink and Warid will shortly file a petition to the Islamabad High Court in order to commence the process of legal merger.

As previously stated, the transaction is expected to create capex and opex synergies with a net present value of approximately USD 500 million with an annual run rate of well over USD 100 million of free cash flow improvements by year three. The combined revenue of both companies for the 12 months to March 2016 was USD 1.4 billion.

Jean-Yves Charlier, Chief Executive Officer of VimpelCom, said:

“VimpelCom continues to make significant progress against its transformation program. This market consolidation represents a further step in our strategy to strengthen our position in the markets in which we operate. As the VimpelCom Group focuses on an ambitious digital transformation, we are investing in revolutionizing our technology core and product portfolio. We look forward to bringing innovative new products and services to our customers in Pakistan.”

Chairman of Dhabi Group, His Highness Sheikh Nahayan Mabarak Al Nahayan, said:

“I am very happy that we have arrived at this milestone today which marks a unique moment for the Pakistan telecom sector. It is very positive news for Pakistan’s economy. The Dhabi Group remains committed to Pakistan and its economic progress and I would like to thank all the relevant authorities for their support in closing this transaction. I am confident that together, the combined businesses will continue to deliver excellence to their customers while contributing positively to the business environment in Pakistan.”

Adeel Bajwa, Chairman, Board Executive Committee, Warid Telecom said

“I am very happy to mark this occasion of consolidation as the right step forward for the telecom industry of Pakistan.

Not only is this a great achievement for the telecommunications sector, but also a boost for the local economy.

I would also like to take this opportunity to express gratitude to all the relevant regulatory authorities for granting approvals which made this unique landmark possible.”

Mobilink and Warid will benefit from VimpelCom’s USD 1 billion1 investment into building one of the largest and most ambitious IT infrastructures in the industry.

The Group’s new digital systems will enable faster roll-out of new local products and services, particularly in the areas of mobile entertainment, communications, the Internet of Things, and mobile financial services. Through this, Pakistan’s digital development will be elevated to the next level, further reducing the digital divide.

VimpelCom, GTH and Dhabi Group announced the agreement to combine their Pakistan telecommunication businesses on 26 November 2015. The completion of the transaction follows regulatory approval from all the relevant authorities and the subsequent exchange of shares. Mobilink has completed the acquisition of 100 percent of Warid’s shares, and the Dhabi Group Shareholders have acquired 15 percent of the shares of Mobilink.

Also Read: Anatomy of Mobilink-Warid Merger

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


  • so Jazz will have 4G Service

  • Adnan Ibrahim

    when will mobilink users will get LTE Services ? Any Idea anyone ?

    • Aon Bilal

      جی بالکل

      • AbdulB1

        time ?

        • Aon Bilal

          ٹائم تو کنفرم نہیں مگر یہ ہے دونوں کمپنیوں کو جلدی ہے کیونکہ دونوں کی بس ہوئی ہے کیونکہ دونوں نے مرجر کی وجہ سے اپنے تمام سستے پیکجز بند کر رکھے ہیں تاکہ انضمام کے موقع پر بہتر پیکجپیکج متعارف کرانے ہے

  • Chacha G

    Warid To Gya Ab :’)

  • Aon Bilal

    الوداع وارد اب موبی لنک کے حوالے
    یا بہت اچھا ہوگا یا چھتر بھگو بھگو کر ماریں گے موبی لنک والے

  • ویسے نیا نام کیا ہوگا؟ مووارد؟

    • Bilal Iqbal

      WarLink… :P

  • Ammar

    Ugh I don’t want a Mobilink logo on my phone

    • Aon Bilal

      بھائی اب کیا ہو سکتا ہے شاید فورجی کا نام وارد ہی رہے

  • Mirza Moazzam Baig

    @2:48 ‘Mill kar Chaa Jao’ wah oye goreya!!

    • Viks

      Dono company me se koi bho goray ki nai hai

      • Haamiz Ahmed

        Gora CEO he mobilink ka
        “Jeffrey Hedberg, Chief Executive Officer of Mobilink,”
        from the article

  • Zaki Uddin

    Isn’t it more like a acquisition ?
    Why they call it merger? To evade government taxes or something ?

    • BUYER

      Exactly, is it takeover or merger??

      • Zaki Uddin

        yeah i dont know, it is clearly an acquisition, as mobilink is getting more shares,

        • jamil

          if they give it a new name then it will be a merger

    • DeeJay Ahmed

      It’s a merger, it would have been an acquisition if they remained separate legal entities and mobilink would have controlled warid!
      But they are merging into one, mobilink owners will have more shares and the company will continue as mobilink after this merger!

  • Mustafa

    Warid ki tabahi shru. Maybe link

  • Curious

    does it mean that Telenor’s dream of beating Mobilink in terms of Subscriber has vanished or do they still have the ground for 8-9 months

  • well, The real question is, will Mobilink be able to keep up with the high quality standards Warid has set in telecom industry?

  • Osama Mehtab

    What about the employees of Warid and its associated suppliers ? This is bad for Telecom sector

  • Warid was the highest quality network in Pakistan. RIP.

  • Aamir Ijaz

    Warid is finished!!

  • ahmed

    Quality gone from Pakistan in this industry, bad day for customers bad day for employees.

  • Aamir Shoaib

    Under Mobilink, all prepaids will be JAZZ and all postpaids will be WARID.

    • M. Hamza

      Bilkul sahi kaha janab.. (y)

  • Daniyal

    “1. The Group-wide contract with Ericsson is for a seven-year period with an option to extend. Link to press release”. This is mentioned at the press release issued at both websites of Mobilink and Warid

    • NSN

      Dear Daniyal
      do u mean both will continue with Ericsson .If this happens then the network will boost alot.what do u say

      • Ansari Danial

        Well exactly i also didn’t get the clear idea about it but this is what mentioned in the press release at their website. I think abu dhabi group has joined hands with Mobilink on the condition that they will keep their contract with ericsson as Sheikh Al Nahyan is still on the board of combined entity.

        • NSN

          Then its good

        • BADAR

          Which board? it means some share of warid is left in AbuDhabi Group

          • Ansari Danial

            With effect from today, the Mobilink board is chaired by His Highness Sheikh Nahyan Mubarak Al Nahyan, with Jon Eddy as Vice Chairman and consists of five other directors nominated by VimpelCom and GTH.

            The Warid board is chaired by His Highness Sheikh Nahyan Mubarak Al Nahyan, with Jon Eddy as Vice Chairman and consists of three other directors nominated by VimpelCom and GTH.

            On conclusion of the legal merger, the combined entity will have a single board and management structure.

          • Bilal Iqbal

            15% shares in Mobilink are exchanged with 100% of warid with abu Dhabi group.

            • BADAR

              What is this philosophy?

              • Bilal Iqbal

                This is called stock evaluation. Mobilink shares and profits are far higher than warid. Now ab u Dhabi group owns 15% share in Mobilink and getting profit accordingly. Whereas vimplecon owns 100% shares of warid. After 2 years abu Dhabi group can sell or retain shares as per future situation of market and Mobilink. Till then, both are partners. Cash was not involved in this transaction for 2 years

                • BADAR

                  That’s great

  • Good to know. Now Jazz will also offer LTE service.

    • YA Raza

      No , thy will offer 5G ??

  • Hammad

    next merger is of ufone with zong.cm pak is almost ready to accquire financially weak network ufone.

  • MAHBOOB ELAHI

    A GOOD NEWS FOR EVERY ONE.
    I M OF VIEW THAT ,,,, TO SAY ,,CHAA JAO,,,,AS WELL ,,PURANEY BANDEY JO AAP KO KHAA
    RAHEY THEY ,,,,AAP UNKO KHAA JAO,,,,,
    PL LOOK INTO YOUR UN NECESSARY EXPENDITURES ,, INTO …BIJLI { POWER } SECTOR AS WELL BILLING SIDE AS U ALL ARE BEING CHARGED AS AN EXCESS OF 25 %
    AS BEING CHARGED ON TARIFF A [2} or A [2-B ] INSTEAD OF A [ 2- C ]
    MORE OVER ,,,,,,,,,,

  • umer ali

    So next meger is of zong with ufone

  • MAHBOOB ELAHI

    mashallah….NATURALLY PAK CHINA LOVE WILL ALSO SHOW THERE STRENGTH.

  • MAHBOOB ELAHI

    IM OF VIEW THAT LET MOBILINK INVITE SOME OF PEOPLES FOR FREE SITTING AND COMMENTS FOR IMPROVEMENTS AND A TPE OF OPEN DEBATES.. .
    SIR,
    I M REALLY NOT IN NEED OF ANY JOB , BUT AS I M ALSO INVOLVED IN BUSINESS AT DUBAI ALSO , SO I HAVE A TYPE OF LOVE AND DUA FOR STRENGTHENING OF THIS COMPANY.
    GOD BLESS THIS NEW MOBOWORLD

    • Fayez Najeeb

      What? Rishta de rahay ho? Business In Dubai?

  • AbdulB1

    world-class transformation team ……………………………. what a post.

  • Interconnect

    Good news for Warid Customers, which were in limbo mode. Suffering from slow, mobile internet, very limited coverage etc., what’s you schedule for Broadband Mobile. As you’re with Ericsson you should be thinking about ETSI. Can a subscriber of Warid from more than a decade have a good day courtesy most industrial zones where demand is peak. Warid cannot assue QOS. Provide LTE ASAP.

  • Irfan

    Warid service was exceptionally good . After Mobilink arrival , i gues their service wont sucks. Mobilink is one of the worst company , they have no ethics . They just ripped of the public.

  • Ashar Rehman

    This is really bad incident, Bloody Arabs So Called Muslim Friends Of Pakistan has rolled back their business from Pakistan :( , Same way our bastard Noora Sharif So called Experienced Team is equally involved to kill job opportunities :( . if i be in telecom ministry i must asks from warid management that you of a a lot money resource your owner is richest man in the world why are you closing/limiting your business form Pakistan, i give them relaxation exemption from tex and in reward i survive the jobs of my beloved pkaistanies, But our corrupt bastard politicians are just interested to fill their own bank account, no one knows from Govt this merger has eliminated many jobs , many people are jobless but who cares? this is the totally failure of Govt, they are not capable to handle country.