The Pakistan Telecommunication Company Limited (PTCL) has submitted a binding offer to buy 100% of mobile operator Warid Telecom, according to a notice on the Karachi Stock Exchange.
PTCL has not disclosed how much it is prepared to pay for the shares….
The Pakistan Telecommunication Company Limited (PTCL) has submitted a binding offer to buy 100% of mobile operator Warid Telecom, according to a notice on the Karachi Stock Exchange.
PTCL has not disclosed how much it is prepared to pay for the shares. Pakistan’s telecoms minister Anusha Rehman has held meetings with PTCL CEO Walid Irshaid.
A person briefed on the matter suggested that one obstacle to the deal is the outstanding US$800m payment which PTCL parent Etisalat owes to the government following a dispute over properties.
Seven years ago, UAE-based Etisalat agreed to buy a 26% stake in PTCL for US$2.6bn but, as of February 2012, only US$1.8bn had been transferred.
Etisalat had reportedly withheld the US$800m remaining because some properties had not been transferred by the Pakistani government to PTCL.
The source said the matter has been discussed at the recent meetings.
A merger between PTCL, which operates under the Ufone brand, and Warid would see the number of operators in Pakistan fall to four from five at the moment. The merged entity would be the second-largest player in terms of subscribers.
But several other local wireless players have reportedly been eyeing Warid, including Zong and Mobilink.
