SingTel sells Warid’s stake to Abu Dhabi Group
Karachi (TheNews / Wednesday, January 30, 2013) – Singapore Telecommunications announced on Tuesday to sell its entire 30 percent stake in Pakistan’s Warid Telecom to the Abu Dhabi Group for $150 million, said Furqan Punjwani, business analyst at BMA Capital.
“Excluding the value of any future transaction interest, the estimated loss on disposal will be approximately $186 million, including the foreign currency translation losses and transaction costs,” said SingTel.
The Abu Dhabi Group, a large business conglomerate in the Middle East and one of the largest foreign investors in Pakistan, has announced that it has reacquired SingTel’s shares in Warid Telecom that it had sold back in 2007.
An official statement of Warid Telecom said: “With 100 percent ownership in Warid Telecom, the Abu Dhabi Group has further reinforced its commitment to the company.
This strategic decision will allow the group to have a more focused approach as Warid enters its eight year of operations in Pakistan.” According to a telecom analyst, with this transaction it will be easier for the company to attract a reasonable buyer.