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PRESENTED BY:

MAMOONA IQBL

PRESENTED TO:

SIR IMAD-U-DIN

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MERGER & ACQUISITION

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MOBILINK OVERVIEWPakistan Mobile Communications Limited, better known as Mobilink GSM, is a telecommunicationservice provider in Pakistan.

Mobilink's Head office is located in Islamabad.

Mobilink started operations on 11 June 1994 as the first GSM cellular Mobile service inPakistan by MOTOROLA Incorporation.

Later it was sold to Orascom, an Egypt-based multi-national company.

Mobilink is the largest cellular service provider in Pakistan. Mobilink's corporate postpaid package issold under the brand name "Indigo" and prepaid by the name of "Jazz".

The Orascom group is also expanding business by started offering DSL broadband and wirelessbroadband service through WiMax based technology.

On 1 July 2008, Mobilink is now the second WIMAX internet service provider in Pakistan. Currentlyproviding services only in Karachi.

The Orascom group also owns TWA (Trans World Associates) which operates an undersea fiber opticcable from Karachi to Fujairah, UAE.

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51.9% owned

As part of Orascom- Vimplecom deal, all Orascom operations were bound to re-brand in all operatingmarkets. Just like Orascom had announced to rebrand itself to become Global Telecom Holding in late2012.

740 Million custom

ers

84 Million custom

ers

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LAOS

ZIMBABWE

TAJIKISTAN

AMSTERDAM

UKRAINE

ITALY

ARMENIA

UZBEKISTAN

GEORGIA

KYRGYZSTAN

KAZAKHSTAN

ALGERIA

BANGLADESH

PAKISTAN

RUSSIA

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In 2004, Warid Telecom International purchased a license for operating anationwide mobile telephony network and long distance international for $291million US.

The license was acquired by a team led by Bashir Tahir the former CEO of the AbuDhabi Group.

Warid Pakistan launched its services in May 2005. Within 80 days of launch Warid Pakistan claims to have attracted more than 1

million users. On June 30, 2007, Singapore Telecommunications Limited (SingTel) and Warid

Telecom entered into an agreement subsequent to which SingTel will acquire a 30percent equity stake in Warid Telecom for an estimated $758 million.

SingTel sold back that stake in January 2013 for $150 million and a right toreceive 7.5 per cent of the net proceeds from any future sale, public offering, ormerger of Warid.

WARID OVERVIEW

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In December 2005, Warid Telecom International obtained a 15-year GSM license tooperate in Bangladesh for US$50 million.

Warid Bangladesh started rolling out its network from mid-2006, and launchedcommercial operations on May 10, 2007, covering 26 districts.

Warid Telecom sold 70% of its stake in Bangladesh operations to India's Bharti Airtel forUS$300 million receiving regulatory approval from the Bangladesh TelecommunicationRegulatory Commission (BTRC) on January 4, 2010.

On December 20, 2010, Warid Telecomwas rebranded as Airtel.On January 1, 2014 Warid in collaboration with Bank Alfalah launched mobile bankingservice namely ‘Mobile Paisa'.

In 2014, Warid also introduced LTE 4G services in Pakistan.

WARID OVERVIEW

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DHABI GROUP

Dhabi Group / Dhabi Holdings manages the investments of His

Highness Sheikh Nahyan Mubarak Al Nahyan and his affiliates,

which span various sectors and geographies, particularly:

Telecommunication (Warid & Wateen, Pakistan), Banking &

Financial Services (Bank Alfalah, Pakistan), Real Estate, Energy

(Oil & Gas / Geothermal), Healthcare and Construction in South

Asia (Pakistan), Eastern Africa (Uganda).

DHABI GROUP

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WARID’S PROBLEM

Warid was facing narrow spectrum problem due to voice and text

services. now Mobilink will shift all Warid users voice and text

data on their own spectrum and use their 3G and Warid LTE

spectrum only for data services. But due to huge database

Mobilink have to deploy more cell sites in big cities like Karachi,

Lahore, Faisalabad, Rawalpindi/Islamabad and Multan etc where

large number of users connect on a single cell site (or use

existing Warid and Mobilink cell sites by converting them both

3G and LTE) to fulfill the speed demand.

WARID’S PROBLEM

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MERGEROn November 26, 2015 VimpelCom and Dhabi Group agreed to merge Mobilink

and Warid into a single company.

The first merger in the mobile telecommunications sector in Pakistan.

Mobilink will acquire 100% shares of Warid.

Dhabi Group will get 15% shares of Mobilink.

There will be one company as a Mobilink.

After a lock-in period of 4 years, Dhabi Group will be allowed to sell its 15%

stakes at fair market value.

VimpelCom will have first rights to these 15% shares, however, they may

offer Dhabi Group to sell these shares to anyone else.

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Board composed of 7 directors of which 6 will be nominated by

VimpelCom; while Dhabi Group can appoint 1 director.

Resolutions of the Board, in general, shall be decided by

majority vote.

Jeffrey Hedberg will be the CEO of merged company.

Andrew Kemp will be the CFO of merged company.

MERGER

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STRATEGIC

MANAGERIAL

FINANCIAL

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Businesses with a best-in-

class mobile network

Competitively priced

services

Wider access to enablement

facilities such as mobile

financial services.

STRATEGIC

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The transaction is expected to create

Capex and Opex synergies with a net

present value of approximately USD

500 million.

The combined revenue of both

companies for the 12 months to

September 2015 was USD 1.4 billion.

With Mobilink will create value for all

stakeholders

FINANCIAL

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Leading high-speed mobile

network in Pakistan.

Enlarged and improved mobile

network with over 80% population

coverage (2G)

Largest network, with almost

5,000 3G and 4G/LTE sites

MANAGERIAL

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Synergies of capex and opex

Total number of Towers: 13,000

Current Mobilink Towers: 8,000

Current Warid Towers: 5,000

3G Towers: 3,600

4G LTE Towers: 1,000

Current Warid and Current Mobilink customers will start using

one single network, one helpline and same services.

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Current Mobilink Revenues for 12 Months till Sep 2015: USD 1 Billion

Current Warid Revenues for 12 Months till Sep 2015: USD 357 Million

pro forma revenues for 12 months till Sep 2015: 1.36 billion

Net Debt Position as of Sep 2015:

Mobilink: USD 380 Million

Warid: USD 470 Million

Pro Forma: USD 850 Million

USD 115 million annual run-rate cost synergies, 90% expected by third

year post-closing; in excess of USD 500 million NPV cost synergies

expected, net of integration costs.

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http://propakistani.pk/2015/11/27/everything-you-need-to-

know-about-mobilink-warid-merger/

http://www.mobilink.com.pk/media-center/vimpelcom-and-

global-telecom-holding-combine-pakistan-telecom-business-

with-warid-telecom/

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