KUALA LUMPUR (Nov 17): The newly-merged entity of the respective telecommunication subsidiaries of Malaysia’s Axiata Group Bhd and India’s Bharti Airtel Ltd will serve approximately 32.2 million subscribers.

In a statement today, Axiata and Airtel announced the completion of the merger exercise of their respective Bangladesh subsidiaries, namely Robi Axiata Ltd and Airtel Bangladesh Ltd.

The completion follows the Jan 28 announcement of both parties entering into an exclusive discussion to explore the possibility of combining the business operations in Bangladesh. 

The combined entity will operate as Robi Axiata Ltd and will see Axiata Group holding a 68.7% controlling stake and Bharti Airtel Ltd holding 25%, while the remaining 6.3% continues to be held by the existing shareholder, which is Japan’s NTT Docomo. 

Robi Axiata is the first telecoms merger in Bangladesh, and consolidates its position as the second largest operator in the country.

Robi Axiata chief executive officer (CEO) Mahtab Uddin Ahmed said the merger strengthens the long term sustainability of the Bangladesh telecoms landscape and business environment.

“[The merger] will secure faster nationwide rollout of mobile broadband, as well as contribute significantly to the overall economy of the country.

“Our work now as a combined entity will be focused towards providing our 32.2 million subscribers, an unparalleled portfolio of innovative mobile and broadband offerings at affordable rates,” he said.

Axiata president and group CEO, Tan Sri Jamaludin Ibrahim, said the Malaysian telecommunications giant’s proven track record of successful strategic mergers and integration in its other markets such as Indonesia, Sri Lanka and Cambodia, has qualified the group to lead the first telecoms merger and initiate market consolidation in Bangladesh.

“In-country consolidation has been one of the group’s key focus in solidifying our position, unlocking profitability and opportunities of the market, as well as ensuring better services to customers and the public.

“As a committed investor with over two decades of presence in Bangladesh, Axiata fully supports Robi’s continued efforts on nation building, especially in bridging the digital divide and to achieve the Digital Bangladesh aspiration.

“We are confident this consolidation will secure the country’s further development, not only within the telecommunications industry, but also [to] act as further impetus to fuel a more mature business and investment environment in Bangladesh,” he said.

As at midday break today, Axiata fell 0.86% or 4 sen to RM4.61, with 558,100 shares traded.