Pakistan Telecommunication Authority (PTA) has sought input of all telecom consumers, stakeholders, interested/affected persons and general public on the proposed Mobilink-Warid merger. According to the PTA notice, the entire above mentioned can provide their comments/inputs (if any) on the subject matter by 22nd April, 2016 to the Director General (Commercial Affairs), PTA Headquarters.
On 15th December 2015, Pakistan Mobile Communications Limited (Mobilink), and Warid Telecom (Private) Limited (Warid) filed a notification of proposed change in substantial ownership interest of Warid, and the request for permission of merger between Mobilink and Warid before Pakistan Telecommunication Authority (PTA), under the existing statutory provisions.
International Wireless Communications Pakistan Ltd (IWCPL), PMCL, Warid Telecom Pakistan Limited LLC (WTPL), Bank AlFalah and Warid have reached an agreement to merge PMCL and Warid subject to necessary regulatory approvals and all legal and procedural formalities. The proposed transaction shall be implemented in two steps: Step 1: Step 1 entails the acquisition of all of the issued and outstanding shares of Warid by PMCL, whereupon Warid shall become the wholly owned subsidiary of PMCL, and PMCL shall issue and allot shares to the Warid Group Shareholders, which shall comprise up to 15% of the issued and paid up shares of PMCL (the merged entity), upon completion of merger.
Step 2: Step 2 entails the legal merger of Warid with PMCL through sanction of a Scheme of Arrangement in terms of sections 284 to 287 of the Companies Ordinance 1984 (the Ordinance). Such merger is to be effected through the sanction of Scheme of Arrangement under sections 284 to 287 of the Ordinance by the High Court. Upon such legal merger being effected, all the assets and liabilities of Warid (including but not limited to Warid's licenses, network, spectrum, towers, infrastructure etc) shall stand transferred/assigned to PMCL.
Currently, cellular mobile segment of the telecom sector of Pakistan consists of 5 cellular mobile operators out of which 4 are offering 3G services and 2 are offering LTE services. The cellular segment is highly competitive and mature. Currently Mobilink is the dominant player in terms of shares in total cellular mobile subscriptions (28.87%). Warid has the smallest share in terms of subscribers (8.4%) among the five mobile operators. Merger of Mobilink and Warid will lead to their combined subscriber share of 37.27%.
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