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Etisalat to pay $800m for Pakistan stake
28 January 2010
Etisalat has settled a dispute with the government of Pakistan over the amount owed for a stake in incumbent operator PTCL
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[Pakistan]
[Etisalat]
[PTCL]
[UAE]
[3G]
Comment: Etisalat has been in effective control of PTCL for some time but the solution of this disagreement with the Pakistan government means the Gulf-based operator will be more likely to push forward investment into its Pakistan business.
Etisalat will pay about $800 million to the government of Pakistan for a stake in Pakistan Telecommunication Company that it acquired in 2006. The UAE’s telco had bought 26% share of PTCL for $2.6 billon, but so far it has paid only $1.4 billion.
Etisalat has not been able to pay the remaining sum for over a year because of a dispute related to the transfer of several properties that Etisalat claims were a part of the original share purchase deal.
Etisalat, in December 2009, had agreed to pay the outstanding $1.2 billion in equal instalments over a period of 4.5 years taking into account “certain corresponding deliverables by the Pakistani counterpart”.
The government, as per the contract, had transferred the properties to Etisalat before the complete payment was made. Etisalat is also planning to place a bid for a coming 3G licence in Pakistan. GTB
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