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Etisalat to take management control of PTCL next month

According to a senior Pakistani government official, Etisalat will take over management of PTCL in February after payment of $1.14 billion as per the revised transaction structure approved by Pakistan's Cabinet Committee on Privatisation (CCOP) on Friday.

"The CCOP meeting chaired by the Prime Minister approved the amended transaction structure for privatisation of PTCL," the official told Khaleej Times yesterday. "The meeting also approved a plan to offload up to 25 per cent of class 'A' shares in PTCL through competitive bidding over the next five years," the official said. Etisalat would be offered the option to acquire those shares through a right to match the highest bid. Under the revised payment schedule, Etisalat will immediately pay about $1.14 billion of the $2.6 billion deal, which it agreed to pay for a 26 per cent stake in June last year. The remaining $1.19 billion will be paid by Etisalat biannually in nine equal installments. The installment structure would be fully backed by corporate guarantees to be furnished by Etisalat.

"The CCOP agreed to allow the UAE firm to make upfront payment of $1.40 billion minus $260 million paid earlier by Etisalat at the time of transfer of management control to them," the official said. "This initial payment of $1.14 billion is part of a deal struck last month that rescued the stalled sale to the UAE-based telecom firm of a 26 per cent stake in PTCL with management control," he maintained.