So much foreign investment flooding into Pakistan, especially from the Gulf states.
Omantel agrees to buy Pakistan’s Worldcall
Oman Telecommunications Co. has agreed to buy a majority stake in Pakistan’s Worldcall , a Worldcall source said on Thursday, in a deal industry sources say could be worth more than $171 million. Omantel, Oman’s second biggest listed company by market value but the smallest telecom operator in the Gulf Arab region, has been planning to expand outside its home market, where it lost its mobile phone monopoly in 2005 and will lose a fixed-line monopoly this year. As competition mounts telecom operators are seeking revenues from overseas. Last month, Omantel’s Chief Executive Mohammed al-Wohaibi told Reuters in an interview his company was due to conclude the purchase of a majority stake in a Pakistan-based telecom operator in June, although he did not identify the company. A Worldcall source, who asked not to be named, said the deal was struck at a meeting on Tuesday and should be wrapped up soon. “They have agreed in principal to go ahead with the acquisition, and the formalities will be completed pretty soon,” he said. He did not give details of the size and value of the deal but industry sources said Omantel may acquire up to 76 percent of Worldcall. At the current share price, a 76 percent stake in Worldcall would be worth about $171 million, though sources said the deal was likely to happen at a premium. In Karachi at 0840 GMT, Worldcall shares were up 3 percent at 18.20 rupees, while the broader market was roughly flat.
The Pakistani market is not new for Gulf Arab telecom operators, who have been hunting for foreign assets as competition increases at home. Qatar Telecommunications Co. , which operates Oman’s second mobile phone operator Nawras, last month completed the purchase of a majority stake in Pakistan’s Burraq Telecom. Emirates Telecommunications Corp. bought a 26 percent stake in PTCL for $2.6 billion in 2005.