Japan’s NTT Docomo has decided to reduce its stake in Bangladeshi mobile operator Robi from 30% to 8%.
Robi said in a statement that Docomo’s decision comes against the backdrop of an “unfriendly regulatory environment and business…
Japan’s NTT Docomo has decided to reduce its stake in Bangladeshi mobile operator Robi from 30% to 8%.
Robi said in a statement that Docomo’s decision comes against the backdrop of an “unfriendly regulatory environment and business uncertainties.”
Malaysian telco giant Axiata, which currently controls 70% of Robi, will acquire the Japanese company’s stake, bringing its total interest to 92%.
“The telecommunications industry is at a critical juncture in Bangladesh with many issues pending between the regulators and the government agencies, notably related to VAT rebate on 2G and 3G licences and 2G licensing rules,” Robi stated.
“Rather than invest further in Bangladesh due to these long-standing uncertainties and potentially poor return on investment, Docomo’s management has opted to dilute its holding in Robi.”
The company also posted a 4.2% drop in its EBITDA in Q1 2013 to BDT4.1bn compared with the previous quarter. Its revenue was up 5.5% to BDT10.8bn.
NTT Docomo bought its stake in Robi in 2008 for US$425m at the time.
Six mobile carriers operate in Bangladesh, with Robi being the third largest.
Just days ago, India’s Bharti Airtel has said it will acquire the 30% it does not already own in Airtel Bangladesh, the country’s fourth-largest operator. In early April, the Bangladeshi government approved US$200m in foreign loans to support the company.
