Etisalat completes 26% purchase of PTCL
Emirates Telecommunications Corporation- Etisalat- has announced the completion of discussions to transfer 26 per cent stake in Pakistan Telecommunication Company Limited (PTCL). All pending issues have been agreed upon, including the conditions for payment of the bid amount of US$2.6b. This will be paid through Etisalat International Pakistan (EIP) - in which Etisalat owns 90% and Dubai Islamic Bank, 10%.
The final deal was signed today at the Pakistani Parliament and was attended by Prime Minister of Pakistan, Shaukat Aziz, and Mohammed Hassan Omran, Chairman and CEO of Etisalat. The Pakistani side was represented by Mr. Tahseen Khan Iqbal, Undersecretary of the Privatization Ministry of Pakistan.
According to the terms of the agreement, Etisalat will pay US$1.4b within one month after the signing of the deal and the remaining amount of US$1.2b will be paid in equal installments over 4 and a half years, with one installment every 6 months. EIP will manage the Pakistani company after the completion of the first payment.
The PTCL deal is seen as an important move by Etisalat to enter one of the most dynamic and promising telecom markets in the region. It also completes the largest privatization effort by the Government of Pakistan. This deal will strengthen Etisalat’s presence in the Asian and international markets.
Mohammed Hassan Omran praised the role played by UAE Ambassador to Pakistan, HE Ali Mohammed Al Shamsi, in bringing the deal to fruition. He said, "The UAE Ambassador has been influential in concluding this deal, which will further strengthen the economic relations between UAE and Pakistan."
"We look forward to starting operations in Pakistan and to bringing additional benefits to shareholders of both Etisalat and PTCL. We will translate our successes in the UAE and other markets in the Middle East and Africa to help improve the telecommunications sector in Pakistan", he added.
Etisalat led a consortium in June 2005 to win the bid to purchase 26 per cent of PTCL, which provides complete telecoms services in Pakistan.