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Three pre-qualified bidders namely Etisalat (United Arab Emirates), China
Mobile (China) and SingTel (Singapore) have deposited their earnest money of
US $ 40 million each with the Privatisation Commission as of June 16, 2005. By
virtue of this deposit, these three bidders are now eligible to participate in
the bidding for Pakistan Telecommunication Company Limited to be held on June
18, 2005. This level of interest and commitment by bidders of international
repute speak volumes of the economic progress of Pakistan and investor
friendly policies of the Government of Pakistan.
The Privatisation Commission is holding the bidding of Pakistan
Telecommunication Company Limited (PTCL) for acquiring 26% shares of PTCL, by
a strategic investor, with management control as a wholly integrated telecom
operator on June 18, 2005 (Saturday) in the presence of the respective
representatives of the print and the electronic media.
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.