Merger: Wind Telecom acquisition by VimpelCom approved
Competition Commission issues conditional approval.
KARACHI:
The Competition Commission of Pakistan (CCP) has granted VimpelCom Limited conditional approval to a cross-border acquisition of Wind Telecom, after undertaking phase-II review of the transaction to address competition concerns.
VimpelCom had submitted a pre-merger application with CCP regarding the proposed acquisition of Italian private company Wind Telecom (formerly Weather Investments). Wind Telecom indirectly holds 51.7 per cent shares in Orascom Telecom Holdings, an Egyptian company with a 100 per cent owned Pakistani subsidiary, Pakistan Mobile Communications Limited (PMCL).
The transaction involves amalgamation of two leading international telecommunication groups, VimpelCom and Wind Telecom, which will create the world’s sixth largest mobile telecommunication carrier in terms of size of the subscriber base.
The acquisition of Wind Telecom by VimpelCom will result in indirect change of control of Orascom Telecom Holdings and its subsidiary in Pakistan. The fact that Telenor (Norway) will receive 31.7 per cent equity shares and 25 per cent voting shares in VimpelCom after the transaction gets consummated had raised competition concerns, prompting CCP to begin the phase-II review of the transactions.
Published in The Express Tribune, March 18th, 2011.
The Competition Commission of Pakistan (CCP) has granted VimpelCom Limited conditional approval to a cross-border acquisition of Wind Telecom, after undertaking phase-II review of the transaction to address competition concerns.
VimpelCom had submitted a pre-merger application with CCP regarding the proposed acquisition of Italian private company Wind Telecom (formerly Weather Investments). Wind Telecom indirectly holds 51.7 per cent shares in Orascom Telecom Holdings, an Egyptian company with a 100 per cent owned Pakistani subsidiary, Pakistan Mobile Communications Limited (PMCL).
The transaction involves amalgamation of two leading international telecommunication groups, VimpelCom and Wind Telecom, which will create the world’s sixth largest mobile telecommunication carrier in terms of size of the subscriber base.
The acquisition of Wind Telecom by VimpelCom will result in indirect change of control of Orascom Telecom Holdings and its subsidiary in Pakistan. The fact that Telenor (Norway) will receive 31.7 per cent equity shares and 25 per cent voting shares in VimpelCom after the transaction gets consummated had raised competition concerns, prompting CCP to begin the phase-II review of the transactions.
Published in The Express Tribune, March 18th, 2011.