Bharti to acquire 70pc stake in Warid
Wednesday, 13 January 2010
Fazlur Rahman
Bharti Airtel Tuesday announced it will acquire 70 per cent stake in Bangladesh's Warid Telecom, with a view to expanding affordable and quality services in the country and doubling its tele-density in a few years.
The announcement came a week after Bangladesh Telecommunications Regulatory Commission approved the US$300 million investment proposal of the Asia's leading integrated telecom service provider for the expansion of Warid's telecommunications network in Bangladesh.
Bharti said under the agreement, the firm would make a fresh investment to rapidly expand the operations of Warid and will have management and board control of the company.
This is the largest investment in Bangladesh by an Indian company. Dhabi Group will continue as a strategic partner retaining 30 per cent shareholding and have their nominees on the Board of the Company, Bharti said in a statement.
"The landmark deal underlines our intent to further expand our operations to international markets where we can implant our unique business model and offer quality and affordable telecom services," Sunil Mittal, chairman of Bharti, said in the statement.
Mr Mittal said Bangladesh, with a population of over 160 million and tele-density of 32 per cent is a promising market for telecom services. Bharti is keen to work in Bangladesh and contribute to achieving the vision of Digital Bangladesh even sooner than 2021.
"It will be our endeavour to raise the bar in the country's mobile services market and bring best in class service, quality network and innovative products in the area of mobile commerce, health, education, agriculture, m-entertainment to customers."
Mr Mittal added: "In particular, we look to leverage our rich experience in taking mobile telephony into rural areas and expand our services to the deepest pockets of Bangladesh and double the tele-density in few years."
Abu Dhabi Group has already spent $680 million in Warid Bangladesh, including vendor financing, and with Bharti the overall investment will be about $1 billion.
The deal is expected to close in a week to 10 days.
With more than 116 million subscribers as of November 2009, Bharti Airtel is the largest cellular service provider in India.
Bharti Airtel Tuesday announced it will acquire 70 per cent stake in Bangladesh's Warid Telecom, with a view to expanding affordable and quality services in the country and doubling its tele-density in a few years.
The announcement came a week after Bangladesh Telecommunications Regulatory Commission approved the US$300 million investment proposal of the Asia's leading integrated telecom service provider for the expansion of Warid's telecommunications network in Bangladesh.
Bharti said under the agreement, the firm would make a fresh investment to rapidly expand the operations of Warid and will have management and board control of the company.
This is the largest investment in Bangladesh by an Indian company. Dhabi Group will continue as a strategic partner retaining 30 per cent shareholding and have their nominees on the Board of the Company, Bharti said in a statement.
"The landmark deal underlines our intent to further expand our operations to international markets where we can implant our unique business model and offer quality and affordable telecom services," Sunil Mittal, chairman of Bharti, said in the statement.
Mr Mittal said Bangladesh, with a population of over 160 million and tele-density of 32 per cent is a promising market for telecom services. Bharti is keen to work in Bangladesh and contribute to achieving the vision of Digital Bangladesh even sooner than 2021.
"It will be our endeavour to raise the bar in the country's mobile services market and bring best in class service, quality network and innovative products in the area of mobile commerce, health, education, agriculture, m-entertainment to customers."
Mr Mittal added: "In particular, we look to leverage our rich experience in taking mobile telephony into rural areas and expand our services to the deepest pockets of Bangladesh and double the tele-density in few years."
Abu Dhabi Group has already spent $680 million in Warid Bangladesh, including vendor financing, and with Bharti the overall investment will be about $1 billion.
The deal is expected to close in a week to 10 days.
With more than 116 million subscribers as of November 2009, Bharti Airtel is the largest cellular service provider in India.