Etisalat to make USD800 million for its PTCL stake by end-March 2010

28 Jan 2010

UAE-based Emirates Telecommunications Corporation (Etisalat) will make a payment of USD800 million to the Pakistani government by the end of March 2010 as part of its 2006 acquisition of a 26% stake in Pakistan Telecommunication Company Limited (PTCL). According to Trade Arabia, citing comments from the country’s minister of privatisation, Waqar Ahmed Khan, only USD1.14 billion of the USD2.6 billion purchase price has been received so far, with issues surrounding a transfer of 3,000 real estate units; under the terms of the acquisition the government agreed to transfer the properties before Etisalat made the full payment. ‘We have agreed on a framework with Etisalat by which the transfer of USD800 million will happen by the end of March; the property issues will be resolved soon,’ the minister said.

In December last year Etisalat had announced that it would pay the outstanding balance in equal instalments over five years in consideration for ‘certain corresponding deliverables by the Pakistani counterpart.’ It remains unclear as to when the remaining USD400 million that Etisalat owes will be paid.