Ali Abbas Soni

Hamza Aftab
Ibaad Kalim
Ownership Tree

VimpelCo
Mobilink
m
Jazz
Dhabi
Warid
Group

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 Some Facts:
 The merged operations of both Mobilink & Warid are going to be known as Jazz.
 Before the amalgamation Warid was 1/3 of Mobilink.
 Warid was doing good business but it needed more funds to compete.
 The merger not just aimed to provide potential customers with
entertainment and access to internet but was aiming to provide customers with
knowledge and education.
 After the merger it is said that they have 50million subscribers across Pakistan being
the largest in the country.

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The Merging Process:
Phase 1:
 Mobilink is Going to Acquire 100% shares of Warid in return Dhabi
Group will get 15% shares of Mobilink.
 No Cash is exchanged.
 Companies operate separately till this phase is completed.

Phase 2:
 Warid and Mobilink will merge into one company.
 After completing the regulatory approvals this single company will
have single support operations, single sales and distribution network,
one single PR agency and so on.

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Phase 3:
 After the completion of Lock-in Period Dhabi Group will be allowed to
sell its 15% stakes at fair market value First Right to VimpelCom.
 The BOD will include 7 directors, 6 of them will be nominated by
VimpelCom,1 by Dhabi Group.

Value Created:
 USD 115 million annual run-rate cost synergies.
 Leverage: Mobilink 1.8x Net debt/EBITDA at signing.
 Pro forma revenue and EBITDA margin of USD 1.4 billion and above
40% respectively.

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 Annual Cellular Subscribers:
PMCL PTML CMPak Instapho
(Jazz)
Telenor Warid Total
(Ufone) (Zong) ne
2003-04 64.03% 15.95% 9.36% 10.67% 0.00% 0.00% 100.00%
2004-05 58.48% 20.19% 7.24% 3.56% 6.54% 3.98% 100.00%
2005-06 49.86% 21.70% 3.02% 0.98% 10.36% 14.09% 100.00%
2006-07 41.90% 22.19% 1.62% 0.53% 16.94% 16.82% 100.00%
2007-08 36.39% 20.56% 4.49% 0.40% 20.59% 17.60% 100.03%
2008-09 30.88% 21.20% 6.77% 0.04% 22.15% 18.96% 100.00%
2009-10 32.47% 19.71% 6.76% 23.99% 17.07% 100.00%
2010-11 30.65% 18.86% 10.04% 24.49% 15.97% 100.00%
2011-12 29.92% 19.89% 14.01% 24.94% 11.24% 100.00%
2012-13 29.06% 19.22% 16.58% 25.20% 9.95% 100.00%
2013-14 27.70% 17.40% 19.43% 26.13% 9.35% 100.00%
2014-15 29.15% 15.53% 19.28% 27.47% 8.57% 100.00%
2015-16 29.36% 14.89% 18.95% 28.54% 8.27% 100.00%
16-Jul 29.63% 14.63% 19.20% 28.58% 7.96% 100.00%
16-Aug 29.97% 14.29% 19.31% 28.44% 8.00% 100.00%
30.21% 14.11% 19.46% 28.48% 7.73% 100.00%
 Warid achieved its all time high
16-Sep
16-Oct 30.28% 13.93% 19.50% 28.52% 7.76% 100.00%
16-Nov 30.36% 13.75% 19.54% 28.63% 7.72% 100.00% market share in 2008-2009 almost
16-Dec 30.22% 13.61% 19.73% 28.91% 7.53% 100.00%
*Jan-17 37.59% 13.48% 20.06% 28.87% 100.00% 19%.
17-Feb 37.65% 13.39% 20.11% 28.85% 100.00%
17-Mar 37.72% 13.28% 20.13% 28.87% 100.00%
 Later falling to 7.5% by mid of 2017

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 Independently Mobilink started of well but with other
players in the market its share declined from 64% to all
time low of 27.7% in FY2013-14

 After the Merger the company regained its leading

position. Mkt Share 38% As at March 2017.

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 3G/4G Subscribers
Operator  CMPak (Zong) PMCL (Jazz) Telenor  PTML (Ufone)  Warid
Technology 3G 4G 3G 4G 3G 4G 3G LTE Total
 2013-14  417814.00 425992.00 895.00 539376.00 1384077.00
 2014-15  2898094.00 105128.00 3656345.00 4162616.00 2570283.00                    106,211 13498677.00
 2015-16  5988197.00 680620.00 8919218.00 8371991.00 5223096.00                    347,132 29530254.00
 Jul-16  6512982.00 789824.00 10200672.00 8639030.00 5269266.00                    367,775 31779549.00
 Aug-16  6755323.00 921526.00 10412410.00 8795937.00 5258699.00                    555,167 32699062.00
 Sep-16  6663710.00 1713900.00 10955525.00 9110397.00 5297543.00                    577,275 34318350.00
 Oct-16  6680819.00 1903285.00 11779923.00 9237732.00 5245299.00                    599,785 35446843.00
 Nov-16  6824012.00 2080720.00 12148195.00 9504314.00 5219952.00                    635,054 36412247.00
 Dec-16  7134497.00 2274157.00 12326033.00 9897252.00 5305094.00                    637,363 37574396.00
*Jan-17  7475904.00 2855336.00 11875228.00 700486.00 10114292.00 152645.00 5095611.00                    - 38269702.00
Feb-17  7602691.00 3111307.00 12043061.00 735068.00 10371697.00 228106.00 4870513.00                    - 38962443.00
Mar-17  7780743.00 3372713.00 12405704.00 799519.00 10525635.00 323823.00 4671916.00                    - 39880053.00

3G/LTE as At Mar-17

PTML
(Ufone) 
12% CMPak (Zon
g)
28%

Telenor 
27%

PMCL (Jazz)
33%
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The benefits to the subscribers:

 Over 50 million customers in Pakistan will benefit from high-speed mobile

telecommunications and digital mobile network.
 Entertainment is going to be the primary focus but other salient features of the
deal include high definition audio and video sharing.
 Higher quality national voice and data coverage, faster downloads, and a wider
portfolio of products and services.
 Bring in new hardware and technology Vimplecom has signed a contract of
1Billion dollars with Ericsson.
 Revamping their packages produce executive packages for customers.

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 The Package Deal Includes:

 SignalTo resolve limited signal coverage in Rural areas  Vimplecom and

Mobilink plan to revolutionize communication and form a digitalized generation.
 Designs to make Sms Delivery faster and quicker.
 Revamping Online banking It plans on offering easy-to-operate and user-friendly
online banking services on mobile.
A telecom official Said We want to ensure that customers have no interruptions
even during the transition phase.”

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 One company Is going to cover the other!
 Mobilink does not have 4G coverage, while Warid does Both companies
benefit with the integrated 4G service operating under the new entity.
 Mobilink serves a wider coverage reach while Warid’s signal coverage is smaller in
comparison  Both companies benefit Again.
 If you can’t find a Mobilink Customer Care Centre you can go to Warid’s
Integrated range of products and services available to either of the telecom
service.
 With the merger, Mobilink customers will also be able to recharge their sims using
a Warid card, and vice versa.

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THANK YOU!

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