PTCL sale , on again?
Looks like the Abu Dhabi people have managed to get major concessions, but the Privatisation Commission has managed to keep the agreed price.

==================================
Etisalat, PTCL agree to resolve pending issues
BY HASEEB HAIDER

21 December 2005


ABU DHABI — The Government of Pakistan and Etisalat have reached an agreement on the sale of 26 per cent stake in Pakistan Telecommunication Company (PTCL), ending months of uncertainties about the nation's landmark privatisation programme.

Pakistan's Minister for Privatisation and Investment Dr Abdul Hafeez Shaikh, who arrived in the capital yesterday morning, had a one-to-one meeting with Etisalat chairman Mohammed Omram and finalised the pending issues. Etisalat appreciated the transparency of the process and the professional approach of the Pakistan government.

The Government of Pakistan appreciated the firm interest and commitment of Etisalat to the privatisation process of PTCL.

Dr Abdul Hafeez, while talking to Khaleej Times stated that a team from Etisalat would be arriving in Pakistan next week to finalise the transaction, which is expected to be completed in January 2006. He did comment on the modalities of the transaction.

It may be recalled that Etisalat had been declared the successful bidder after it had outbid China Mobile and Sing Tel by offering $2.6 billion for the acquisition of 26 per cent stake in PTCL.

Omran said: "We are pleased to announce that our talks with the Government of Pakistan representatives resulted in resolution of all issues. We are looking forwards towards participating in the dynamic telecom sector in Pakistan to the benefit of the shareholders of both Etisalat and PTCL."

Yesterday's agreement to end the three-month long deadlock comes in the wake of a reported offer by Pakistan to a staggered payment structure of up to five years, which was one of the key demands raised by Etisalat.

For the 26 per cent stake in PTCL, Etisalat has offered to pay $2.6 billion, which is more than $1 billion higher than the second bidder. After failing to meet the payment deadlines, the UAE telecom operator raised several issues to salvage the deal. Those included deferred payment structure; ability to pledge the acquired shares; right to increase shareholding via a ‘call option’ for additional ‘A’ class shares; allowing dual listing of PTCL shares in UAE; management agreement; exemption from withholding tax; waiver of duties & taxes; custom duty waiver and ability to transfer acquired shares."

Labels: PTCL

- posted @ Friday, December 23, 2005