AMSTERDAM, Nov. 26, 2015 /PRNewswire/ -- VimpelCom Ltd.
("VimpelCom") and Global Telecom Holding S.A.E. ("GTH"), together
with Warid Telecom Pakistan LLC and Bank Alfalah Limited ("Dhabi
Group shareholders"), have today reached an agreement to merge
their Pakistan telecom
businesses. The merger of Pakistan Mobile Communications
Limited ("Mobilink") and Warid Telecom (Private) Limited ("Warid")
will see the combined entity serving 45 million customers. The
transaction is the first merger in the mobile telecommunications
sector in Pakistan.
Together with continued investments, the new entity will allow
Mobilink and Warid to accelerate the availability of high-speed
mobile telecommunications and provide consumers and businesses with
a best-in-class mobile network, more competitively priced services
and wider access to enablement facilities such as mobile financial
services.
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."
The transaction is expected to create Capex and Opex synergies
with a net present value of approximately USD 500 million. The
combined revenue of both companies for the 12 months to
September 2015 was USD 1.4 billion.
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."
VimpelCom and the Dhabi Group shareholders have agreed a clear
corporate governance structure. The board will consist of seven
directors, of whom six will be nominated by VimpelCom and GTH and
one nominated by the Dhabi Group shareholders. Upon successful
completion of the transaction, 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.
Additional details of the Transaction
- As part of the Transaction, Mobilink will first acquire 100% of
Warid's shares in consideration for the Dhabi Group shareholders
acquiring approximately 15% of the shares of Mobilink (the
"Transaction"). Following completion of the Transaction, the
parties intend to merge Warid into Mobilink in due course (the
"Merger").
- The Transaction is expected to close within six months from
today, subject to obtaining approvals from the relevant authorities
in Pakistan and the satisfaction
of customary closing conditions. The Merger is expected to close
within 6 months from closing of the Transaction, subject to the
satisfaction of customary closing conditions. 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.
For further information please refer to the investor
presentation on www.vimpelcom.com which will be loaded at
13:30 CET today. VimpelCom and GTH
will host an analyst and investor conference call at 14:00 CET today.
About VimpelCom
VimpelCom, an international telecoms company operating in 14
countries and headquartered in Amsterdam, is one of the world's largest
integrated telecommunications services operators providing voice
and data services through a range of traditional and broadband
mobile and fixed technologies in Russia, Italy, Algeria, Pakistan, Uzbekistan, Kazakhstan, Ukraine, Bangladesh, Kyrgyzstan,
Tajikistan, Armenia, Georgia, Laos, and Zimbabwe. VimpelCom's operations around the
globe cover territory with a total population of approximately 740
million people. VimpelCom provides services under the "Beeline",
"Kyivstar", "WIND", "Mobilink", "banglalink", "Telecel", and
"Djezzy" brands. As of September 30,
2015 VimpelCom had 217 million mobile customers and 5.8
million fixed-line broadband customers on a combined basis.
VimpelCom is traded on the NASDAQ Global Select Market under the
symbol (VIP).
Follow us on Twitter @VimpelCom, visit our blog @
blog.vimpelcom.com or website @
http://www.vimpelcom.com
About Global Telecom Holding
GTH, which is 51.9% owned by VimpelCom Ltd., is a leading
international telecommunications company operating mobile networks
in high growth markets in Africa
and Asia, having a total
population under license of approximately 408 million as of
September 30, 2015. GTH operates
mobile networks in Algeria
("Djezzy"), Pakistan ("Mobilink"),
and Bangladesh ("Banglalink"). GTH
reached more than 84 million customers as of September 30, 2015. GTH is traded on the Egyptian
Exchange under the symbol (GTHE.EY), and on the London Stock
Exchange, its GDRs are traded under the symbol (GLTD:LI). For more
information visit: http://www.gtelecom.com
About Dhabi Group
Dhabi Group / Dhabi Holdings manages the investments of His
Highness Sheikh Nahyan Mubarak Al Nahyan and his affiliates, which
span various sectors and geographies, particularly:
Telecommunication (Warid & Wateen, Pakistan), Banking & Financial Services
(Bank Alfalah, Pakistan), Real
Estate, Energy (Oil & Gas / Geothermal), Healthcare and
Construction in South Asia
(Pakistan), Eastern Africa (Uganda), GCC (mainly UAE) and the
Caucasus/Black-Sea Region (Georgia, Turkey).
Disclaimer
This release contains "forward-looking statements" within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are statements that are not
historical facts, and include statements regarding the expected
timing of completion of the transaction, the expected final
ownership stake that the Dhabi Group shareholders would acquire at
completion; the expected benefits of the transaction, including
network improvements and synergies. Any statement in this release
that expresses or implies VimpelCom's, GTH's or Dhabi Group's
shareholder intentions, beliefs, expectations or predictions (and
the assumptions underlying them) is a forward-looking statement.
Forward-looking statements involve inherent risks, uncertainties
and assumptions, including, without limitation, the possibility
that: the conditions to completion will not be satisfied or waived
or that the requisite regulatory approvals will not be obtained or
will be obtained on terms not acceptable to the parties and the
transaction; the expected benefits of the transaction may not
materialize as expected or at all, due to, among other things, the
parties' inability to successfully implement integration strategies
or otherwise realize the synergies anticipated; the businesses of
either or both of Mobilink or Warid may not perform as expected
prior to or following completion of the transaction due to
uncertainty or other market factors; and other risks and
uncertainties beyond the parties' control may materialize. If such
risks or uncertainties materialize or such assumptions prove
incorrect, actual results could differ materially from those
expressed or implied by such forward-looking statements and
assumptions. Certain other risks that could cause actual results to
differ materially from those discussed in any forward-looking
statements include the risk factors described in VimpelCom's Annual
Report on Form 20-F for the year ended December 31, 2014, and other public filings made
by the VimpelCom with the U.S. Securities and Exchange Commission,.
The forward-looking statements contained in this release are made
as of the date hereof, and VimpelCom, GTH and Dhabi Group
shareholders each expressly disclaims any obligation to update or
correct any forward-looking statements made herein due to the
occurrence of events after the issuance of this release.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/vimpelcom-and-global-telecom-holding-combine-pakistan-telecom-business-with-warid-telecom-300184803.html
SOURCE VimpelCom Ltd.