MIC hits back at Pakistan exit claims

25 Jan 2006

Millicom International Cellular (MIC) has denied press reports that it is planning to exit Pakistan’s mobile market. Earlier this month the Pakistan Times claimed that MIC had agreed to sell its entire 98.9% holding in GSM operator Paktel and its 61.3% stake in AMPS/TDMA provider Pakcom to local investors, and was in talks to sell off the brand names of both companies. Pakcom and Paktel are the smallest of the country’s six mobile operators with a combined market share of less than 9% at the end of September 2005. However, MIC has issued a statement vigorously denying the reports: ‘The Millicom group denies having any plans to end or sell its mobile telephony operations in the country and it is in fact increasing its support of the expansion of Paktel’s mobile operations in Pakistan. The Millicom group is however weighing its options with respect to its shareholding in Pakcom, including a sale thereof, and discussions regarding a sale have taken place with local investors. The Millicom group has no plans at present to dispose of its shareholding in Paktel and it is certainly not engaged in any negotiations with respect to the sale of its holding in Paktel or Pakcom with any Chinese entity, as reported previously by Pakistan Times.’

Pakistan, Millicom International Cellular (MIC), Pakcom (Instaphone), Zong (CMPak)