Broadbandindia Magazine

Bharti Airtel, the country’s largest mobile services provider, will acquire a 70% stake in Warid Telecom, the fourthlargest mobile company in Bangladesh (out of six operators).

Bharti will make a fresh investment of $300 million (nearly Rs 1,370 crore) in Warid and will have management and board control of the company. The Abu Dhabi Group, the current owner, will retain a 30% stake and will continue to have its nominees on the board, according to a statement. The Abu Dhabi Group has already spent $680 million (over Rs 3,100 crore) in Warid Bangladesh, including vendor financing, and with Bharti, the overall investment will be about $1 billion (over Rs 4,500 crore), the companies said.

The acquisition by Bharti Airtel would be financed in part by purchase of existing shares held in Warid Telecom by the Abu Dhabi Group for a nominal consideration and the balance by way of issue of fresh shares at par. The new funding would be utilised for expansion of the network, both for coverage and capacity, and introduction of innovative products and services, the statement said.