PTCL privatisation : Etisalat yet to pay $799.306 million

PTCL privatisation : Etisalat yet to pay $799.306 million:

(DaillyTimes English Pakistani Newspaper : Published on October 23, 2010)

Middle-Eastern company Etisalat, the buyer of Pakistan Telecommunication Company Limited (PTCL) has defaulted in making payment of $799.306 million, Federal Minister for Privatization Senator Waqar Ahmed Khan informed Senate Standing Committee on Privatisation here on Friday.
Etisalat was supposed to deposit $2.598 billion as final bid price for acquiring 26% PTCL shares along with it’s management control through open bidding in installments. The Etisalat has paid up to the date some $1.799 billion to Pakistan and has defaulted in making payment of remaining amount of $799.306 million by assigning reason for non-transfer of properties and immoveable assets to the PTCL by the government according to the Sale Purchase Agreement signed in state of privatisation of PTCL to Etisalat.
Senate Standing Committee on Privatisation was held here at Parliament House in chair Senator Adnan Khan to review the present status of privatisation of State Owned Enterprises (SOEs) under Benazir Employees Stock Option Schemes (BESOS), Pakistan Telecommunication Company Limited and the performance of Karachi Electric Supply Company.
Sources in Privatisation Commission informed Daily Times that earnest money of $40 million was received in June 2005, whereas another amount of $219.896 was also received in the same month of 2005, Government of Pakistan (GoP) had received proceeds amount of $500 million in March 2006, another proceeds amount of $623.604 million in April 2006, while $16.500 million were paid to GoP as success fee by the purchaser.
According to Sales Purchase Agreement (SPA), Etisalat had paid a proceeds amount of $133.217 million each during September 2006, June 2007 and November 2007, while six more installments of total amount $133.217 million each were due from March & September 2008, 2009 and year 2010 as total default of $799.306 million.
Sources said that managerial control of PTCL has fully transferred to buyer but 26% entity’s shares are till within PTCL. However delay in remaining payment by the buyer was projected due to non-transfer of properties and immoveable assets of PTCL to Etisalat.

————————————————————————————————————————

Thanks to:

Saif Awan : Email:  s.awan@yahoo.co.uk

Leave a Reply