TeleCard in talks to sell majority shares
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Consolidation of the Industry is yet again evident. —————— Posted by 'The News' |
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| By Imran Ayub KARACHI: Asia's one of the fastest growing telecommunication companies is eying Pakistan as it is in advanced talks with the country's biggest payphone company to acquire majority shares. Industry sources expect the deal may attract over $90 million. Sources said the Asian company was likely to strike a deal with TeleCard ñ one of the few payphone companies in Pakistan ñ which had planned to sell its majority shares. "The two sides have been in talks for the last several weeks," said a source privy to the development. "It may take a month to close the deal but initial talks suggest that more than 55 per cent shares' sale was discussed between the two sides." He said the exact value of the stake sale would be announced once the deal was finalised but estimates suggested that it could be worth more than $90 million. However, he added, the number of shares to be sold would determine the deal's value. "If an agreement is struck on divestment of 55 per cent shares or a little more than that, the deal is likely to be worth around $90 million or more," added the source. The country has attracted foreign telecom companies in recent months as three groups acquire majority stakes in local companies. First, Qatar Telecom stretched its wings to Pakistan and is in final talks to acquire Burraq Telecom's nationwide and international telephone networks at $30 million. Egypt's Orascom Telecom ñ parent company of the largest cellular operator Mobilink ñ finalised a deal with DVCOM, the licensed LDI (long distance and international) and limited mobility telecom operator. Besides these, Oman Telecom reached an agreement to buy a majority stake in local cable and fixed wireless service provider WorldCall at an estimated $171 million. Sources said TeleCard was initially interested in offering its minority stake and launched talks with several foreign groups but finally managed to attract the Asian company. "The company is in talks with that (Asian) firm," a company source confirmed but requested not to name the Asian telecom concern. "It is premature to give a timeframe and value of the deal but these are expected to be finalised sometime next month." Currently, TeleCard provides payphone and WLL (wireless local loop) services and also has an ISP (Internet service provider). "The company aims to become the most technologically advanced integrated telecom solution provider of the country," he added. "The company has successfully launched WLL service (GO CDMA) based on CDMA2000 1X technology that provides a unique combination of voice and data/Internet for the first time in Pakistan," he added. The telecom sector has attracted substantial foreign investment during the last three years with main focus on cellular service. However, industry players believe it is high time that reputed international telecom operators capitalise on the opportunities, particularly in rural areas. Telecommunications attracted $1.41 billion foreign direct investment during the first nine months (July-March) of 2006-07, a jump of 34 per cent, remaining at the top among all other sectors. |
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