Home »Telecommunication » Pakistan » Cabinet body approves PTCL sale to Etisalat

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  • Jun 21st, 2005
  • Comments Off on Cabinet body approves PTCL sale to Etisalat
The Cabinet Committee on Privatisation (CCoP) on Monday approved the bid for PTCL, which resulted in issuing letter of intent (LoI) to Etisalat to pay 25 percent of bid amount in 15 days. "The CCoP has accepted the bid of Etisalat for 26 percent shares of PTCL," said Prime Minister Shaukat Aziz while talking to media persons after the meeting. A spokesman of Privatisation Commission later in the day confirmed issuance of LoI to Etisalat.

"We think the price received by the government reflects true value of the company. All stakeholders will benefit from the transaction," said Shaukat.

He said that no employee would be forced to leave the organisation. All facilities promised with the employees would be given, he added. Etisalat is a regional player, extending its wing's share in other countries, he said.

About SingTel he said that it is a major global player, which completed due diligence.

The bidding of these companies confirmed their confidence in Pak economy and its future growth potential. Its future investment prospects have also improved, the PM said.

He said that the big items for divestment on the agenda are now PSO, PPL, NIT and Steel Mills.

A big chunk of Rs 155.158 billion ($2.599 billion) will help reduce budget deficit and bank borrowing, while remaining an underlying item, rather appearing in the budgetary figures announced earlier, he said.

It would not go directly into the kitty and would not contribute for a big jump in government revenues, Shaukat added.

In the meeting, the PM said, the Committee had approved the transaction which made Etisalat successful bidder.

He said that employees of PTCL would have larger opportunities abroad as Etisalat is moving abroad and has just won a cellphone licence in Saudi Arabia. This would help them to serve the company's other overseas investments. Services of PTCL would also improve. Teledensity would also grow.

The Prime Minister said that handling future transactions in the same fashion would help improve the interests in privatisation and overall investment scenario of the country.

Etisalat has offered Rs 117 ($1.96) per share for 26 percent stake in PTCL, amounting to Rs 155.158 billion ($2.599 billion).

A statement of PM Secretariat reads as follows: "The CCoP felt that the price offered by Etisalat is in line with government's expectation and reflects the value and potential of PTCL. It also felt that this partnership will create new value for the PTCL and Etisalat and further strengthen the existing strong bonds of friendship between Pakistan and the UAE."

Copyright Business Recorder, 2005


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