Mobilink and Warid will merge into a single company with Mobilink acquiring 100% of Warid. Dhabi Group will receive 15% stakes in Mobilink. The merger will create strategic, managerial, and financial benefits including cost synergies valued at $500 million. The combined company will have over 80% population coverage, nearly 5,000 3G/4G sites, and pro forma annual revenues of $1.36 billion.

1. 1

2. PRESENTED BY:
MAMOONA IQBL
PRESENTED TO:
SIR IMAD-U-DIN
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3. MERGER & ACQUISITION
3

4. MOBILINK OVERVIEW
Pakistan Mobile Communications Limited, better known as Mobilink GSM, is a telecommunication
service provider in Pakistan.
Mobilink's Head office is located in Islamabad.
Mobilink started operations on 11 June 1994 as the first GSM cellular Mobile service in
Pakistan by MOTOROLA Incorporation.
Later it was sold to Orascom, an Egypt-based multi-national company.
Mobilink is the largest cellular service provider in Pakistan. Mobilink's corporate postpaid package is
sold under the brand name "Indigo" and prepaid by the name of "Jazz".
The Orascom group is also expanding business by started offering DSL broadband and wireless
broadband service through WiMax based technology.
On 1 July 2008, Mobilink is now the second WIMAX internet service provider in Pakistan. Currently
providing services only in Karachi.
The Orascom group also owns TWA (Trans World Associates) which operates an undersea fiber optic
cable from Karachi to Fujairah, UAE.
4

5. 51.9%
owned
As part of Orascom- Vimplecom deal, all Orascom operations were bound to re-brand in all operating
markets. Just like Orascom had announced to rebrand itself to become Global Telecom Holding in late
2012.
740
Million
custom
ers
84
Million
custom
ers
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6. LAOS
ZIMBABW
E
TAJIKIST
AN
AMSTERDA
M
UKRAIN
E
ITALY
ARMENI
A
UZBEKISTA
N
GEORGI
A
KYRGYZSTA
N
KAZAKHST
AN
ALGERIA
BANGLADES
H
PAKISTA
N
RUSSIA
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8.  In 2004, Warid Telecom International purchased a license for operating a
nationwide mobile telephony network and long distance international for $291
million US.
 The license was acquired by a team led by Bashir Tahir the former CEO of the Abu
Dhabi Group.
 Warid Pakistan launched its services in May 2005.
 Within 80 days of launch Warid Pakistan claims to have attracted more than 1
million users.
 On June 30, 2007, Singapore Telecommunications Limited (SingTel) and Warid
Telecom entered into an agreement subsequent to which SingTel will acquire a 30
percent equity stake in Warid Telecom for an estimated $758 million.
 SingTel sold back that stake in January 2013 for $150 million and a right to
receive 7.5 per cent of the net proceeds from any future sale, public offering, or
merger of Warid.
WARID OVERVIEW
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9. In December 2005, Warid Telecom International obtained a 15-year GSM license to
operate in Bangladesh for US$50 million.
Warid Bangladesh started rolling out its network from mid-2006, and launched
commercial operations on May 10, 2007, covering 26 districts.
Warid Telecom sold 70% of its stake in Bangladesh operations to India's Bharti Airtel for
US$300 million receiving regulatory approval from the Bangladesh Telecommunication
Regulatory Commission (BTRC) on January 4, 2010.
On December 20, 2010, Warid Telecomwas rebranded as Airtel.
On January 1, 2014 Warid in collaboration with Bank Alfalah launched mobile banking
service namely ‘Mobile Paisa'.
In 2014, Warid also introduced LTE 4G services in Pakistan.
WARID OVERVIEW
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10. 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).
DHABI GROUP
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11. WARID’S PROBLEM
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.
WARID’S PROBLEM
11

12. MERGER
On November 26, 2015 VimpelCom and Dhabi Group agreed to merge Mobilink
and Warid into a single company.
The first merger in the mobile telecommunications sector in Pakistan.
Mobilink will acquire 100% shares of Warid.
Dhabi Group will get 15% shares of Mobilink.
There will be one company as a Mobilink.
After a lock-in period of 4 years, Dhabi Group will be allowed to sell its 15%
stakes at fair market value.
VimpelCom will have first rights to these 15% shares, however, they may
offer Dhabi Group to sell these shares to anyone else.
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13. Board composed of 7 directors of which 6 will be nominated by
VimpelCom; while Dhabi Group can appoint 1 director.
Resolutions of the Board, in general, shall be decided by
majority vote.
Jeffrey Hedberg will be the CEO of merged company.
Andrew Kemp will be the CFO of merged company.
MERGER
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14. STRATEGIC
MANAGERIAL
FINANCIAL
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15. Businesses with a best-in-
class mobile network
Competitively priced
services
Wider access to enablement
facilities such as mobile
financial services.
STRATEGIC
15

16. 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.
With Mobilink will create value for all
stakeholders
FINANCIAL
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17. Leading high-speed mobile
network in Pakistan.
Enlarged and improved mobile
network with over 80% population
coverage (2G)
Largest network, with almost
5,000 3G and 4G/LTE sites
MANAGERIAL
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18. Synergies of capex and opex
Total number of Towers: 13,000
Current Mobilink Towers: 8,000
Current Warid Towers: 5,000
3G Towers: 3,600
4G LTE Towers: 1,000
Current Warid and Current Mobilink customers will start using
one single network, one helpline and same services.
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19. Current Mobilink Revenues for 12 Months till Sep 2015: USD 1 Billion
Current Warid Revenues for 12 Months till Sep 2015: USD 357 Million
pro forma revenues for 12 months till Sep 2015: 1.36 billion
Net Debt Position as of Sep 2015:
Mobilink: USD 380 Million
Warid: USD 470 Million
Pro Forma: USD 850 Million
USD 115 million annual run-rate cost synergies, 90% expected by third
year post-closing; in excess of USD 500 million NPV cost synergies
expected, net of integration costs.
19

20. http://propakistani.pk/2015/11/27/everything-you-need-to-
know-about-mobilink-warid-merger/
http://www.mobilink.com.pk/media-center/vimpelcom-and-
global-telecom-holding-combine-pakistan-telecom-business-
with-warid-telecom/
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