Dubai, June 20, 2005: Emirates Telecommunications Corporation (Etisalat) today announced that it has been identified as the highest bidder for the acquisition of a 26 per cent stake in Pakistan Telecommunications Corporation Limited (PTCL). This latest win reflects the determination of Etisalat to strengthen its position as the leading telecommunications company in the region and beyond through the efforts of the Corporation’s international investment arm, Etisalat International.
The Pakistan Privatization Commission made the announcement during a bidder’s conference held in Islamabad on Saturday night (18th June 2005) – a process involving many leading telecom companies.
“Winning the PTCL bid is a huge achievement for Etisalat and is in line with our international strategy to gain a foothold in important markets such as Pakistan,” said Obaid Bin Mes’har, CEO, Etisalat International.
“The bidding process headed by the Pakistan Privatization Commission was transparent and professional throughout”, Mes’har added.
Etisalat and its Consortium partner, Dubai Islamic Bank, made the USD 2.57 billion offer after a thorough and rigorous valuation of the market potential.
Pakistan is the sixth highest populated country in the world. Nevertheless, it has an extremely low telecommunication services penetration.
“The Pakistani market provides for substantial synergy and growth opportunities for both companies. The country currently experiences accelerated economic growth, with many international corporations investing in the economy. Therefore, the economic outlook is very positive, especially for telecommunication services. Given its financial and operational strength, PTCL is ideally positioned to develop and grow” Mes’har commented.
The acquisition of 26 per cent of PTCL provides Etisalat International access to the management of the company and a pool of experienced professionals,. This combined with the financial resources, provides a suitable platform for furthering Etisalat’s international ambitions.