Airtel to Sign MoU with Warid for Stake Sale

by CXOtoday Staff    Dec 31, 2009

Bharti Airtel, India s leading mobile service provider, is close to acquiring a majority stake in the Bangladesh operations of Warid Telecom with officials of both companies meeting in Dhaka to wrap up the deal.

The Indian company, which is looking at buying a 70 percent stake in Warid, has reportedly received a favourable response from Warid s promoters, the Abu Dhabi group.

"A memorandum of understanding (MoU) could be signed between the companies during the visit (of Abu Dhabi group officials)," The Daily Star newspaper quoted a Warid Telecom official as saying. The MoU is the primary step before signing the final deal between the companies to share confidential business strategies.

Both Bharti Airtel and the Abu Dhabi group have sought the approval of Bangladesh Telecommunication Regulatory Commission (BTRC). BTRC has asked for some details from the companies such as Airtel’s investment plans in Bangladesh and also asked the two firms to clarify how Warid Telecom would clear its liabilities, including bank loans, after the stake sale.

Bharti Airtel has placed a $300-million initial investment plan to BTRC, which will be implemented after signing the deal.