Allen & Overy is advising Axiata Group Berhad (Axiata), one of Asia’s largest telecommunications companies, on a transformational merger in the Bangladeshi telecommunications industry. The merger will result in the formation of the second largest mobile telecommunications company in Bangladesh, with a customer base of approximately 40 million, and is expected to be completed in the first half of 2016.

The merger will see Axiata’s Bangladesh subsidiary, Robi Axiata, combine with Airtel Bangladesh (Airtel), the Bangladesh subsidiary of Bharti Airtel (Bharti). Bharti is a leading India-based global telecommunications company. Upon completion, Axiata will hold a 68.7% controlling stake in the combined entity (operating as Robi Axiata), while Bharti will hold 25%. The remaining 6.3% will be held by NTT DOCOMO of Japan, an existing shareholder of Robi. The enhanced scale achieved through the merger is anticipated to result in better network quality and coverage, an improved offering of products and services to customers, the creation of the largest network of customer service centres across Bangladesh, and improvements to mobile internet access in Bangladesh.

Allen & Overy’s cross-border team was led by partner Chris Moore, with support from senior associates Aravind Balajee and Kai Hsien Yang; associates Lynn Soh, Nicole Rondy and Ayesha Thapar; and trainee solicitor Adarsh Chhabria (all in Singapore). Additional support on regulatory issues was provided by partner Michael Reede, and associates Keara Stretton and Ban-Ya Yim (all in Sydney). Senior associate Gareth Banfield (in London) assisted on tax issues.

Commenting, lead partner Chris Moore said: “We are proud to have assisted Axiata on this true game-changer. Bangladesh’s telecommunications industry has enormous potential, and this merger will strengthen the long term sustainability of the sector in Bangladesh and enhance shareholder value. This transaction is testimony to Allen & Overy’s ability to effectively manage and advise on complex cross-border M&A transactions in emerging markets in South and South East Asia. This has been made possible by our years of experience in advising corporates in South East Asia and South Asia in their outbound transactions, our deep understanding of the regional telecommunications industry, and of the South East Asian and South Asian markets.”