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The completion of the formal handing over of Pakistan Telecommunication
Company Limited (PTCL) management is target for April 12, 2006. Pursuant to
the Share Purchase Agreement (SPA) signed with Eitsalat International Pakistan
on March 12, 2006, the initial payment of US dollar 1.4 billion has been
remitted in full.
UAE's company Eitisalat made offer at per share bid price of $1.96. In rupee
terms, the total value of 1.326 billion (26 per cent) shares comes to
Rs155.158 billion, highest in the history of Pakistan, at a rate of Rs117.01
per share. Thus, the total value of the company was placed at Rs596.76
billion."
The second highest bidder, China Mobile of China, offered a bid price of $1.06
(Rs63.48) per share or $1.409 billion (Rs84 billion) for 26 per cent shares,
which was about 84 per cent lower than the highest bid. It estimated total
value of the company at Rs323.74 billion. The third bidder, Sing Tel of
Singapore, offered a bid price of $0.88 (Rs52.54) per share or $1.16688
billion (Rs69.663 billion) for 26 per cent shares. This bid was about 80 per
cent lower than the highest bid. Sing Tel valued the whole company at Rs267.9
billion. 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.
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.