Warid takeover talks scrapped

5 Mar 2014

The Abu Dhabi Group has called off negotiations regarding the takeover of its Pakistani wireless division Warid, by incumbent telco Pakistan Telecommunication Company Ltd (PTCL) after it was unable to reach an agreement with the prospective buyer on the valuation of the cellco. An unnamed Warid official was quoted by local press firm The News as saying: ‘The ongoing discussions between the Abu Dhabi group and PTCL for the merger and acquisition of Warid Telecom Pakistan have been called off. The decision has been taken by the shareholders of Warid Telecom Pakistan since an agreement could not be reached on the desired valuation for the company.’ As previously noted by CommsUpdate, PTCL entered a binding offer for the cellco in December 2013, although a reserve price of USD500 million is understood to have deterred China Mobile, which operates in Pakistan under the ‘Zong’ brand from entering a bid.

Pakistan, Pakistan Telecommunication Company Limited (PTCL), Warid Telecom (Jazz), Zong (CMPak)