The Privatisation Commission has invited qualified strategic investors to submit their expression of interests (EoIs) to acquire 26 percent shares of Pakistan Telecommunication Company Limited (PTCL) with management control as an integrated telecom operator. Upon receiving EoIs and the processing fee from the interested parties as well as the request for statement of qualification (RSOQ) will be sent to the interested parties, it said, adding the last date for submission of RSOQ to the Commission would be January 28, 2005.
The Commission has asked the potential investors to submit their EoIs at the earliest in order to get maximum time for completion of RSOQ requirements, saying those who had already submitted their EoIs need not apply afresh, however, they have been asked to reiterate their interest.
The PTCL is the leading provider of basic telephone services to the private sector in Pakistan with over 4.4 million telephone lines in service. Besides providing fixed line and ancillary services, it owns Pakistan Telecommunication Mobile Limited (Ufone), one of five GSM cellular providers (two operators yet to commence business) in Pakistan and Paknet a countrywide Internet service provider. Its strong financial position demonstrated during 2004 excluding subsidiaries as per unconsolidated financial of PTCL indicates; Revenue: Rs 74,124 million, operating profit: Rs 41,938 million, net profit after-tax: Rs 29,169 million, Total assets: Rs 141,595 million, total equity: Rs 83,600 million with a network of installed 5.27 million lines and 4.43 million access lines in service.
The PC has asked the interested quality players to submit EoIs along with information regarding experience in the telecom sector, international telecom development, involvement in the acquisition/operation of telecom requiring system, upgrading and managerial restructuring, audited financial account statements for the preceding three years, and the details of the ownership structure and a non-refundable processing fee of $ 5,000 or Rs 300,000.
It may be noted that the independent regulator, Pakistan Telecommunication Authority (PTA), has liberalised and deregulated the sector to facilitate an expected increase in competition subsequent to the sale of various telecom licenses.
A consortium consisting of JP Morgan and Goldman Sachs International is advising the government of Pakistan on the privatisation of PTCL.
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