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The Privatisation Commission is holding the bidding of Pakistan
Telecommunication Company Limited (PTCL) for acquiring 26% shares of Pakistan
Telecommunication Company Limited (PTCL), by a strategic investor, with
management control as a wholly integrated telecom operator on June 18, 2005
(Saturday). An Investors Forum was held on May 25, 2005 to respond to the
queries of the potential bidders and to inform them about the bidding process.
The pre-qualified bidders have already completed the due diligence process of
the company in the data room. The potential bidders will deposit an amount of
Rs.40 million as earnest money latest by June 16, 2005 evening, to become
eligible for participating in the bidding process. The bidding will be held in
the presence of the respective representatives of the print and the electronic
media.
The pre-qualified parties include SingTel (Singapore), Etisalat (UAE), Telekom
Malaysia (Malaysia), Mobile Telecommunication Company (Kuwait), Saudi Oger Ltd
(Saudi Arabia), Saudi Telecom Company (Saudi Arabia), Turkcell (Turkey), China
Mobile Communication Corporation (China) while Consortium of Al-Mal Limited
(Egypt) and Detecon (Germany) has been conditionally pre-qualified.
PTCL is the leading provider of basic telephone services to the private sector
in Pakistan with over 4.4 million telephone lines in service. Besides
providing fixed line and ancillary services, PTCL owns Pakistan
Telecommunication Mobile Limited, one of five GSM cellular providers in
Pakistan and Paknet a countrywide Internet service provider. Its strong
financial position demonstrated during FY 2004 excluding subsidiaries as per
unconsolidated financials of PTCL indicates: Revenue PKR 74,124 million,
Operating profit: PKR: 41938 million, Net Profit after Tax: PKR:29,169
million, Total Assets: PKR: 141,595 million, Total Equity: PKR: 83,600
million, with a network of installed 5.27 million lines and 4.43 million
access lines in service.
The independent regulator, Pakistan Telecommunication Authority (PTA), has
liberalized and deregulated the sector to facilitate an expected increase in
competition subsequent to the sale of various telecom licenses. A consortium
consisting of JP Morgan and Goldman Sachs International is advising Government
of Pakistan on the privatisation of PTCL. The cabinet has already given its
approval for sale of PTCL as integrated entity in August 2000. The government
has 88 % shares of Company and after the sale of 26 % shares the government
would retain 62 % shares in the company.