Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

Society Pakistan & World Affairs
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This is a very encouraging start.

Pakistan Govt Receives 1st Installment of PTCL Bid Amount

ISLAMABAD (Dow Jones)-The Pakistan government has received the first installment of proceeds from a recent sale of a 26% stake in Pakistan Telecommunication Co., or PTCL, a government minister said Wednesday. Abdul Hafeez Sheikh, Pakistan’s minister for privatization and investment, told reporters that Emirates Telecommunications Corp. (ETISALAT.AD) has deposited 10%, or $259.8 million, as the first installment of the bid amount of nearly $2.6 billion for the PTCL stake. “Yes, we have received the amount,” Sheikh said, without giving any details. On June 18, Etisalat bid $1.96 per share for the 26% stake, or 1.326 billion shares, along with management control, of PTCL, the country’s largest phone service provider. The bid totaled $2.598 billion.

China Mobile Communication Corp. (CHL) bid $1.063 per share, while Singapore Telecommunications Ltd. (T48.SG), or SingTel, placed a bid of $0.88 per share. Later, the Pakistan government had approved the bid of Etisalat and under the arrangement the firm was required to deposit the first installment within 10 days of the formal approval of bid by the Pakistan government. The rest of the bid amount is required to be deposited within 60 days. A Privatization Commission official said the commission would make a formal announcement in this regard in the next couple of days. PTCL sale was the biggest privatization transaction in Pakistan’s history. PTCL’s total assets are worth an estimated PKR141 billion (US$2.36 billion), with a combined customer-base of over 7.5 million, including fixed-line, cellular and wireless local loop users. In the last financial year to June 30, 2004, PTCL’s net profit was PKR29.2 billion.

http://sg.biz.yahoo.com/050629/15/3t7yd.html

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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

Cool:) What is this money going to be spent on?

Real Islam vs Mullahism
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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

Just saw on Geo tv, that we are going to receice the remaining 90% in the next 60 days, which will more than treble FDI into Pakistan.

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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

mujh par:D

Need To Sell A Piece of Land In Pakistan
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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

For this year, this is just a one time thing, so how does that have any effect on the long term investment prospects?

FrIeNdZzz...
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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

for long term im india’s investment in pak:D

FrIeNdZzz...
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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

for building slums :smiley:

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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

woh bhi to investment hi hua na.bechare gareeb logon ke sir par chatt to ho jayegi:p

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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

There are more privitization deals planned in the coming years, and many foreign companies lining upto invest in them, as well as major infrastructure projects that they are already investinng in, or are pledging to invest in.

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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

not many people in Pakistan sleep on the streets.

...Rain...
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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

I am trying to understand why is this such a big deal. Did you pakis not expect to get paid for the asset sold and hence it is a huge surprise that the agreed upon terms of the transaction actually got the payment processed or is it that you are surprised that an asset can be worth over $1B dollars and are just giddy at the number of zeroes. What exactly is it with this thread? The question you have to ask is, is this transaction halal.

Tu ...
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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

I second PD’s statement…

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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

PD, I think the surprise is yet to come, when all this extra wealth gained by selling national assets are not used for the welfare of ordinary Pakistanis.

I just read something very "strange" today, the Pakistani Prime Minister thinks that "we (in Pakistan) put so much money in (the budget on our) development funds that the Pakistani economy is unable to absorb it". I am really surprised, he has such an insight with such an excellent state of infrastructure, schools and hospitals and with a PM who thinks like this, we can rest assure that where these funds will do. Just like the 02-03 debt relief of 59 billion rupees was really spent on development and Pakistanis are enjoying the fruits of it.

See the surprise.

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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

On fattening up various Army generals and politicians.

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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

^Sad but true...

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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

The why is due to a lack of knowledge on your part of the environment in Pakistan..Firstly efforts to sell PTCL to a strategic investor have been in the pipelines since 1994..opposition to the sell off has been very fierce..from unions and people whobenefit in getting who want an organisation they can stuff with their cronies..as well as the human cost factor of possibly making thousands of people unemployed (political consequences). Secondly PTCL has fetched a price which is well over the reserve price..almost double i think..previous sales of assets like Habib Bank and UBL have generally not fetched such good offers..lastly attracting major corporations to the bids does show that Pakistan is being perceived as a safe place for investment.

uffff meri tauba :(:(:(:(:(:(:(:(:(
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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

Let’s hope not. But from experience I have seen that those companies that have been privatized, not just in the six years, but even before have always performed better for their consumers, and corruption has been rooted out. No wonder you have vested interests, be they politicians, fauji’s and the family interests who have always thwarted the privitization of PIA. The day that leviathen is sold off, I will be very happy, and it will start running like a world-class airline that it should be.

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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

Etisalat Deal May Open Door for More FDI in Pakistan

Muhammad Aftab, Arab News

ISLAMABAD, 27 June 2005 — The capital market and the government gave Gulf investors a big applause as United Arab Emirates’ telecom giant Etisalat bought Pakistan’s most profitable telecom monopoly, while new opportunities opened up for investment in big dividend companies. UAE dominated the economic scene last week, reflecting Gulf’s growing investment and business relations with Pakistan. The euphoria was created by Etisalat’s $2.59 billion purchase of 26 percent shares of the state-owned Pakistan Telecommunications Corporation Ltd. (PTCL) with management control. It is reflected in statements by Prime Minister Shaukat Aziz and Dr. Ishrat Hussain, governor, State Bank of Pakistan (SBP), and top business leaders, for its impact on FDI inflows.

Special applause was focused on UAE President Sheikh Khalifa ibn Zayed Al-Nahyan, and UAE government. Dr. Mohamed ibn Khalfan ibn Kharbash, chairman, Etisalat, and the company’s Chief Executive Officer Obaid Saeed ibn Mes’har, were specially praised for investing in Pakistan. Obaid Saeed expects $2.59 billion “investment to pay off within five years, hopefully, sooner.” Regarding Etisalat’s $1.96 a share bid, he says, “we feel this is the right value.” His optimism is based on vast market opportunities and the fact that Etisalat will have PTCL’s management control. Etisalat will fund the deal with 25 percent equity and 75 percent bank borrowing, with Dubai Islamic Bank’s making 10 percent equity and 10 percent of debt portion.

The Etisalat entry in the market will open the doors for other UAE potential investors to bolster economic and trade ties between our two countries. It’s a major and very significant transaction, which is also very important from strategic point of view… There are natural synergies between UAE and Pakistan and the private sectors of the two countries.” On the back of PTCL deal, Aziz has decided to speed up the ongoing process of privatization, sale and investment in several mega, state-owned, high yield companies.

These include: the 70 percent oil market distributor and leader Pakistan State Oil (PSO), oil explorer and producer Pakistan Petroleum Ltd. (PPL), important financial market player National Investment Trust (NIT) and the giant Pakistan Steel Mills (PSM), among others. Etisalat acquisition and management control of PTCL, comes just 27 days after Sheikh Nahyan ibn Mabarak Al-Nahyan’s Abu Dhabi Group (ADG) started Alwarid in Pakistan — its $400 million, state of the art, highly innovative and aggressively competitive cellular services in Pakistan. ADG has invested in banking, real estate and telecom, including long distance and international (LDI), and wireless local loop (WLL). The group has invested $170 million in modern Bank Alfalah Ltd., $104 million in United Bank Ltd., and $100 million in Wateen Telecom (Pvt) Ltd. Pakistan hopes to attract more FDI from Gulf and other investors, on the back of Etisalat deal.

http://www.arabnews.com/?page=6&section=0&article=66017&d=27&m=6&y=2005

Last person to answer this post wins!!!!
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Re: Pakistan Govt receives 1st installment of $ 2.6 billion PTCL Bid

Etisalat to focus on improved customer services in Pakistan

Pakistan Times Business & Commerce Desk
KARACHI: The new management of PTCL will focus on customer services and provide telecommunication services and high speed Internet service everywhere in the country. This was stated by the chief executive officer of Etisalat International Obaid Saeed Obaid Bin Meshar while talking to newsmen after signing the agreement to purchase the management stake (1.326 billion shares) of Pakistan Telecommunication Company Ltd (PTCL) for $ 2.6 billion.

Minister for Privatization Dr. Abdul Hafeez Shaikh Secretary Privatization Commission of Pakistan (PCP) Tehseen Khan Iqbal, members of Etisalat Consortium, officials of PC Advisor J P Morgan were also present on the occasion. Meshar said his company will announce a future plan to improve operations of PTCL to benefit its employees, subscribers and the country. This will include a good plan for PTCL staff, he added. “PTCL lines will be available everywhere in Pakistan and we will introduce ‘high speed’ Internet facility which is eagerly needed in the country”, Etisalat CEO said.

He pointed out that the new management will work together with Government of Pakistan for the development of telecommunication services in the country and specially focus on customer service by improving operations of PTCL. Dr. Hafeez Shaikh called a step ahead in the history of Privatization which will give a signal to the world that privatization is done in a transparent manner in Pakistan. He was confident that PTCL-Etisalat synergy will emerge as a top class company in the world.

To a question, he said in the next round, Mustehkam Cement will be privatized in July followed with PSO, PPL and NIT. After these transactions, Karachi Shipyard, Pakistan Steel, Jamshoro Power Plant, Faisalabad Electricity Board will come under hammer.

http://pakistantimes.net/2005/07/01/business1.htm#new