New Delhi, India (BBN) – Bharti Airtel on Tuesday announced it will acquire 70 percent stake in Bangladesh’s Warid Telecom, with a view to expanding affordable and quality services in the South Asian country.
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 the country.
Bharti Airtel will make a fresh investment to rapidly expand the operations of Warid Telecom and will have management and board control of the company, according to the agreement.
“This is the largest investment in Bangladesh by an Indian company. Dhabi Group will continue as a strategic partner retaining 30 percent shareholding and have their nominees on the Board of the Company,” the Bharti Airtel said in an announcement.
The new funding will be utilized for expansion of the network, both for coverage and capacity, and introduction of innovative products and services, the announcement added.
“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 Bharti Mittal, Chairman and Managing Director, Bharti Airtel, said in the statement.
Mr Mittal said Bangladesh, with a population of over 160 million and tele-density of 32 percent 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, he added.
Commenting on the deal, HH Nahayan Mabarak Al Nahayan, Chairman, Dhabi Group said: “Were pleased to partner Bharti Airtel and believe this partnership will bring benefits to all stakeholders, most importantly the customers of Warid Telecom. The telecom market in Bangladesh has immense growth potential and Bharti Airtel’s rich experience and product portfolio promise to redefine this market.”
Abu Dhabi Group has already spent $680 million in Warid Bangladesh, including vendor financing, and with Bharti the overall investment will be about $1.0 billion.
With more than 116 million subscribers as of November 2009, Bharti Airtel is the largest cellular service provider in India.
This will be Bharti’s second operation outside India. The company launched its mobile services in Sri Lanka in January 2009.
Launched in May 2007, Warid is the country’s fourth-largest mobile phone firm with more than 2.9 million subscribers and trails market leader Grameenphone, which has 22.30 million users, followed by Orascom Telecom with 12.27 million subscribers and Axiata (Bangladesh) 10.99 million users.
Bangladesh’s mobile users now stand at 52 million, which is expected to exceed 70 million by 2011.
BBN/SS/SI/AD-13January10-1:58 am (BST)
