Bank Alfalah to invest Rs 1.136 billion in Warid Telecom

Bank Alfalah Ltd has decided to invest Rs 1.136 billion in Warid Telecom, which would soon become a sixth cellular company in the country.
According to an information collected from the Karachi Stock Exchange, the bank has disclosed that "It agreed to take a 26 percent equity stake in Warid Telecom (Pvt) Ltd, and has invested Rs 1.136 billion."
Last month Warid Telecom agreed to deposit 25 percent of the bid amount for a mobile licence within 10 working days. The company would make a further deposit of another 25 percent within 40 days thereof, in response to Pakistan Telecommunication Authority (PTA) offer following the default by Space Telecom on its obligation to meet the schedule for its bid of $291 million.
Along with Telenor Company of Norway, Space Telecom had been declared as the successful bidder in an auction on April 14.
Upon receipt of $146 million, the PTA will issue Warid the mobile telecom licence. The balance amount of $146 million will be payable in 10 equal instalments in 10 years.
The first instalment of $14.6 million, however, is payable in equivalent Pak rupees at the prevailing parity.
Warid Telecom and Telenor Mobile Company upon receipt of mobile licences would join the other four licence holders competing business. They are Mobilink, Ufone, Paktel and Instaphone.
Bank Alfalah will soon sale 30 percent of its stake through initial public offering by the end of this month.
The bank will offer 40 million shares at Rs30 per share, including a premium of Rs20 per share.
The Abu Dhabi Group (the consortium) was Alfalah's majority (70 percent) shareholder.
Habib Bank Ltd owned the remaining (30 percent) shares of the bank. Pursuant to a bidding process conducted by the Privatisation Commission on September 21, 2002 the consortium was declared successful bidder in respect of 29.94 percent shares owned by Habib Bank and was subsequently sold to the consortium at Rs 27.56 per share.
The commission sold the remaining 0.06 percent shares to three ex-employees of Habib Credit Exchange Bank.
Alfalah is one of the fastest growing private banks in the country. Over the last five years, the bank has made notable progress in increasing business volume, efficiency and profitability.
As of December 31, 2003, the bank's total deposit stood at Rs 76.7 billion, while net advance amounted to Rs 49.2 billion.
Bank is operating through an extensive branch network comprising 59 branches.