Axiata, Bharti Airtel to merge Bangladesh units

PETALING JAYA: Axiata Group Bhd's 91.59% subsidiary Robi Axiata Ltd has merged with India-based telco Bharti Airtel's Airtel Bangladesh Ltd, to strengthen their position in the Bangladesh market.
In a filing with Bursa Malaysia, Axiata said it had signed a definitive agreement with Bharti for the merger, which will create the second largest telco operator in Bangladesh.
Upon completion, Axiata will hold a 68.7% controlling stake in the combined entity, while Bharti will hold a 25% equity interest. The remaining 6.3% stake will be held by the existing shareholder, NTT DOCOMO of Japan.
Axiata said the telco landscape in Bangladesh has been one of high-growth, even though intensively competitive with six players.
"The proposed merger is set to strengthen the industry structure, competitiveness and, more importantly, bring greater benefits to customers in terms of network quality and coverage and an improved offering of data products and services," it added.