Axiata Group chief executive officer Tan Sri Jamaludin Ibrahim.
KUALA LUMPUR: Axiata Group Bhd
and Bharti Airtel Ltd have completed the merger exercise of their respective telecommunication subsidiaries in Bangladesh, Robi Axiata Ltd (Robi) and Airtel Bangladesh Ltd.
In a statement, Axiata said it now holds 68.7% controlling stake in the combined entity, while Bharti holds 25%. The remaining 6.3% continues to be held by the existing shareholder, NTT DOCOMO of Japan.
The telco said the combined entity would operate as Robi Axiata Limited and will serve approximately 32.2 million subscribers.
The joint strengths of Robi and Airtel sets the stage to deliver the widest mobile network coverage across Bangladesh, enhancing its stronghold in the mobile internet segment as well as consolidating its position as the second largest operator in the country.
“Axiata’s proven track record of successful strategic mergers and integrations in our other markets such as Indonesia, Sri Lanka and Cambodia has qualified the Group to lead the first telecoms merger and initiate market consolidation in Bangladesh,” Axiata president and group chief executive officer Tan Sri Jamaludin Ibrahim said in the statement.
He said in-country consolidation had been one of the group’s key focus in solidifying our position, unlocking profitability and opportunities of the market as well as ensuring better services to customers and the public.
“As a committed investor with over two decades of presence in Bangladesh, Axiata fully supports Robi’s continued efforts on nation building especially in bridging the digital divide and to achieve the Digital Bangladesh aspiration.
“We are confident this consolidation will secure the country’s further development not only within the telecommunications industry but also act as further impetus to fuel a more mature business and investment environment in Bangladesh,” Jamaludin said.
Axiata said the merger was completed following the fulfilment of the condition precedents to the agreement and filing of the merger filing with the Registrar of Joint Stock Companies and Firms of Bangladesh Court.
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