Business

Bangladesh High Court approves merger of Axiata’s Robi with Airtel

Syndicated News
Written by Syndicated News

KUALA LUMPUR, Sept 2 2016  : Axiata Group Bhd and Bharti Airtel Ltd’s bid to merge their respective telecommunication units in Bangladesh, Robi Axiata Ltd and Airtel Bangladesh Ltd, received the approval of the country’s High Court.

The merged entity would be known as Robi, said Axiata.

“The High Court Division of the Supreme Court of Bangladesh has, on Aug 31, 2016, approved the Scheme of Amalgamation for the amalgamation of Airtel Bangladesh with Robi, where Robi shall be the surviving corporation,” it said in a filing to Bursa Malaysia here yesterday.

Bharti is an Indian telecommunication company headquartered in New Delhi.

Upon completion, Axiata will hold a 68.3 per cent controlling stake in the combined entity while Bharti will hold 25 per cent and the remaining 6.7 per cent will be held by the existing shareholder, NTT DOCOMO of Japan.

Axiata said the approval of the High Court was attached with several conditions including the respective spectrum assigned each to Robi and to Airtel Bangladesh prior to the proposed merger and will continue to be used by MergeCo
for the time period stipulated in the letter of assignment or license.

“The merged company may renew these spectrums in accordance with applicable rules and regulations at the time of the renewal,” it said.

The difference between the Robi spectrum price paid in 2011 and the price paid by Airtel Bangladesh for spectrum in 2005 of about US$65 million shall be payable by the merged company to the Bangladesh Telecommunications Regulatory Commission (BTRC).

The fees, in relation to the proposed merger, have been fixed at US$12.8 million payable to the BTRC, in which it would determine the mechanism of payment of these fees including the possibility of installment payment.

Besides, the proposed merger is subjected to the fulfilment of other conditions stipulated in the agreement and is expected to be completed in the fourth quarter of 2016, it added. – Bernama

Comments

comments

About the author

Syndicated News

Syndicated News

News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.