HiWEB and Pars Online agree on terms of merger, resulting in an ITC heavyweight in Iran. Kian is the deal advisor.
At 10:00 PM on Saturday October 29th, Pars Online and HiWEB CEO’s signed an agreement for the two companies to merge.
Kian Capital Management was the advisor for the deal providing deal structuring and contract negotiation. The Pars Online group of shareholders will become one of the main shareholders of HiWEB as result of the merger.
Broadband internet, VSAT and datacenter services comprise over 95% of Pars Online’s profits. We believe the quality of HiWEB’s profits will improve as result of the deal. With this deal, HiWEB will become one of the pillars of telecommunications services in the country and will be a better investment target for international players like Vodafone.
We expect the combined internet services operations of the two companies will result in a 20% reduction in costs.
The Pars Online brand will be gradually phased out, however current customers will receive services as before the deal without any changes.