China Mobile to take 89pc stake in Paktel
By Aamir Shafaat Khan
KARACHI, Jan 22: China Mobile Communications Corporation (CMCC) is all set to buy majority stake in the Paktel held by the Millicom International Cellular SA (MIA). The Millicom International signed an agreement on Jan 21 for the sale of its 88.86 per cent shareholding in the Paktel Limited to China Mobile.
The total cash consideration payable to the Millicom as a result of the transaction (including the repayment of inter-company debt) is approximately $284 million.
According to an announcement here, completion of the transaction is subject to certain regulatory approvals and procedures. If such approvals are obtained, completion is expected to occur in late February 2007.
According to a press release of the MIC available on its website, the transaction implies an enterprise valuation for the Paktel Limited of $460 million.
Merrill Lynch and KASB Securities were advising China Mobile on this transaction, being considered as the first real Chinese strategic investment activity in Pakistan’s cellular market.
Millicom is a global telecommunication investor with cellular operations in Asia, Latin America and Africa.
It currently has cellular operations and licences in 17 countries. The group’s cellular operations have a combined population under licence of approximately 433 million people.
According to Invest Cap, Millicom wanted to sell its Pakistani unit as soon as possible after concluding it would not get the return on its investment because of challenging business conditions and frequency interference issues.
Meanwhile, a source in the Pakistan Telecommunications Authority (PTA), who asked not to be named, said he had only seen the information available on the website of Millicom -- but till Monday the PTA did not receive any intimation or information from any of the buyer and seller over the huge sale of stake in the Paktel.
Market sources said the operators of Paktel had not planned their marketing strategies in view of rising competition in the already overheated mobile phone market which further charged with the entrance of Telenor, Warid etc. Besides, Paktel was already facing stiff competition with Mobilink and Ufone.
http://www.dawn.com/2007/01/23/ebr1.htm
By Aamir Shafaat Khan
KARACHI, Jan 22: China Mobile Communications Corporation (CMCC) is all set to buy majority stake in the Paktel held by the Millicom International Cellular SA (MIA). The Millicom International signed an agreement on Jan 21 for the sale of its 88.86 per cent shareholding in the Paktel Limited to China Mobile.
The total cash consideration payable to the Millicom as a result of the transaction (including the repayment of inter-company debt) is approximately $284 million.
According to an announcement here, completion of the transaction is subject to certain regulatory approvals and procedures. If such approvals are obtained, completion is expected to occur in late February 2007.
According to a press release of the MIC available on its website, the transaction implies an enterprise valuation for the Paktel Limited of $460 million.
Merrill Lynch and KASB Securities were advising China Mobile on this transaction, being considered as the first real Chinese strategic investment activity in Pakistan’s cellular market.
Millicom is a global telecommunication investor with cellular operations in Asia, Latin America and Africa.
It currently has cellular operations and licences in 17 countries. The group’s cellular operations have a combined population under licence of approximately 433 million people.
According to Invest Cap, Millicom wanted to sell its Pakistani unit as soon as possible after concluding it would not get the return on its investment because of challenging business conditions and frequency interference issues.
Meanwhile, a source in the Pakistan Telecommunications Authority (PTA), who asked not to be named, said he had only seen the information available on the website of Millicom -- but till Monday the PTA did not receive any intimation or information from any of the buyer and seller over the huge sale of stake in the Paktel.
Market sources said the operators of Paktel had not planned their marketing strategies in view of rising competition in the already overheated mobile phone market which further charged with the entrance of Telenor, Warid etc. Besides, Paktel was already facing stiff competition with Mobilink and Ufone.
http://www.dawn.com/2007/01/23/ebr1.htm