Public CompanyAirtel may sign MoU with Warid during Hasina's visit
Bharti Airtel is likely to sign an agreement with Bangadeshi firm Warid Telecom for acquiring 70 per cent stake during Prime Minister Sheikh Hasina"s visit to India next week.
- Bangla, India to sign six deals during Hasina"s visit - Bharti gets nod to invest $300 mn in Warid Telecom - B"desh nod for Bharti"s 70% stake buy in Warid - Zia warns Hasina against any "unequal Indian deal" - B"desh cabinet approves power exchange proposal with India - Bharti nears deal with Warid in Bangladesh
Sources said the finer details of the deal are being worked out and both the companies would sign an MoU to this effect.
A corporate deal during Hasina"s visit is planned to send a signal on strengthening bilateral investments between both the countries.
The deal could be signed on January 12 in a joint session of the three chambers-- Assocham, Ficci and CII-- where Hasina is expected to address, sources said.
A Bharti Airtel spokesperson said at the moment it has nothing further to add from what it has said earlier: "We keep evaluating international expansion opportunities from time to time. However, at this point, we do not have anything definite to share."
After failure of its talks with South African firm MTN over dual listing issues, Bharti was desperately looking for an overseas acquisition where growth potentials are huge which it found on Warid.
Bharti Airtel, India"s number one cellular operator last week received the nod from Bangladesh"s telecom regulator to purchase 70 per cent stake in Warid Telecom and to invest $300 million (Rs 1,385 crore) in the company.
"The Bangladesh Telecommunication Regulatory Commission (BTRC) has approved Airtel"s proposed a $300 million investment to buy Abu Dhabi group"s 70 per cent stake in the Warid Telecom," BTRC Chairman Zia Ahmed had said.
The proposed deal will enable it to enter the lucrative neighbourhood market. The nod comes after six months of pursuit since the Abu Dhabi group put its stake on sale.
Ahmed said Airtel would take over 70 per cent stake in Warid by creating new shares possibly at a nominal price.
"The BTRC has given the go-ahead to transfer Abu Dhabi group"s shares in Warid Telecom to Bharti Airtel," Zia said.
The purchase will make Bharti the newest foreign company to make inroads into the fast-growing Bangladesh mobile market. Launched in 2007, Warid has nearly three million subscribers in Bangladesh.
Bangladesh has 52 million mobile subscribers, expected to rise to 100 million by 2015.