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A Shares Purchase Agreement (SPA) between Siemens and Privatisation
Commission (PC) was signed here today. Mr. M. Tahsin Khan Iqbal Secretary
Privatisation Commission, Mr. Junaid Khan CEO Pakistan Telecommunication
Company Limited (PTCL) and Sheikh Tahir Javed Divisional Director of Seimens
Pakistan Engineering Company signed on behalf of the respective parties for
the sale of 53 % shares held by Pakistan Telecommunication Company Limited (PTCL)
in Carrier Telephone Industries (CTI).
The Privatisation Commission offered 53 % shares (approximately) held by
Pakistan Telecommunication Company Limited (PTCL) in Carrier Telephone
Industries (CTI) for sale to a qualified investor as 'a going concern' basis
with management control, as a part of the privatisation process of the
Telecommunication sector in Pakistan.
Addressing on this occasion Mr. M. Tahsin Khan Iqbal said that the most
significant part of this transaction was that whereas the world's one of the
best electronic company, Siemens now actively be running this factory, the
surplus land measuring 46,111 Sq Yard, which had been attached to CTI but not
hitherto utilized by CTI would revert to Government of Pakistan (GoP). The CTI
was carved out of PTCL so as to be able to maximize revenues for the GoP, he
added.
Mr. M. Tahsin Khan Iqbal further informed that after receiving Rs.500 million
the SPA was being signed and the management of CTI was simultaneously being
handed over to the Seimens.
The legal status of the Capital Structure is: PTCL- 8,016 Ordinary Shares of
Rs.1000/= each and Siemens AG, Germany- 7251, 5 % Cumulative Preference Shares
of Rs.1000/= each. Siemens finally offered Rs.62,375/- per share and a total
price of Rs. 500 million for 8016 shares of PTCL in CTI.
As per terms of the Articles of Association of CTI, Siemens concurrence was
required for the sale of PTCL shares in CTI to a Competitor (Competitor being
any person or Company who deals either as principal, or agent in electrical
plant and apparatus of all types, including but without prejudice to the
generally of the foregoing, long distance Telecommunication Equipment and
Electrical Component and competes in any such fields with Siemens.
CTI's principal business is manufacturing of transmission equipment for
telecommunication services and equipped with the state-of-art machinery, which
include Digital Microwave Radio, Mux for Optical Fiber, Rural Digital Branch
Exchange, Single Channel VHF Radio. CTI is located at Industrial Area Sector:
I-9/2, Islamabad.
Mr. Alois G. Zollner Senior Vice President for SIEMENS while appreciating the
professional approach of Privatisation Commission during the process of the
privatisation of CTI said that investment in CTI was a corner stone investment
in Pakistan and Siemens has supported the ongoing privatisation program of
Pakistan.
The senior officials of Privatisation Commission, representatives of Ministry
of Communication & I.T, PTCL and media were present during the meeting.
Later, while talking to newsmen, Secretary PC M. Tahsin Khan Iqbal said that
the consortium of Hassan Associates with Al-Jummaih Group of Saudi Arabia has
been asked to deposit US $ 100 million for signing the Shares Purchase
Agreement (SPA) for Karachi Electric Supply Company (KESC), which he hoped
would be handed over to the buyer by the end of the current month.