PTCL announcement for submitting non-binding offer to acquire Warid Telecom
Karachi (DailyTimes Lahore/ Abrar Hamza / Tuesday, October 1, 2013) – Pakistan Telecommunications Company Limited (PTCL) on Monday has finally announced officially that the company has submitted a non-binding offer to acquire Warid Telecom.
According to a notice sent to the Karachi Stock Exchange (KSE) by PTCL, the company has submitted a non-binding offer to acquire Warid Telecom shares while the validity period of the offer is 30 days.
When contacted various PTCL senior officials to comment on this, they refused to give any remark on it saying that they are totally unaware about the issue. Local officials in Pakistan have not been informed about the matter by higher authorities of Etisalat, which is a parent company of PTCL, till date, an official said.
Further proceeding with the transaction is subject to a number of conditions including completion of satisfactory due diligence, acquiring relevant regulatory approvals, acceptance of the offer and fulfillment of certain requirements and conditions necessary to close the transactions, the letter stated.
It is worth mentioning here that a non-binding offer is an offer that isn’t binding. The ‘buyer’ is not required to put down any deposit or earnest money and neither the buyer nor the owner is committed.
A senior official of PTCL’s cellular company told Daily Times that it is all probability that Etisalat will acquire the Warid because the owners of both companies Abu Dhabi Group and Etisalat belong to the same region, United Arab Emirates (UAE) and the numbers of meetings for this purpose between both the companies have been held during the last couple of years. Bidding process for Warid Telecom has begun on Monday in Abu Dahbi, he informed.
Moreover, the Warid Telecom is expecting more than $1.0 billion offer from aspirants for its all assets and installations in Pakistan. The China Mobile, which is a parent company of Zong, has also dived in the bidding process of the Warid aiming to elevate its subscribers base because the company has the only option to get sufficient subscribers in the current complex SIMs’ sale mechanism in the country, sources told Daily Times.
The industry experts said that the bidding of Warid in such a time when 3G auction is expected to take place within the next few weeks as per Supreme Court of Pakistan’s directions will likely affect the investment ability of the companies who have been participating in a bidding of Warid as they might not be in a position to invest heavily in 3G auction.