A UAE-based company, Emirates Telecommunications Corporation (Etisalat), made a big difference by offering $1.96 per share ($2.598 billion) for 1.36 billion shares of the PTCL here on Saturday. China Mobile Company stood second with an offer of $1.06 per share (1.409 billion) and Singapore Telecom third with an offer of $0.88 per share. It was no doubt a big show in real terms and a great achievement for the government of Pakistan, as it completed the transaction successfully despite strong resistance from the PTCL employees and some political parties.
Sealed bids of contending parties were opened in the over-crowded hall of a local hotel. Privatisation minister Dr Abdul Hafeez Shaikh announced the result of the bidding.
Information minister Shaikh Rashid Ahmed and science and technology minister Awais Khan Leghari also witnessed the bidding.
Later on, commenting on the outcome of the bidding, Dr Abdul Hafeez Shaikh said the government was committed to push forwards its privatisation programme. He congratulated the successful bidder, Etisalat.
The minister termed successful bidding for the PTCL a good omen for Pakistan and hoped that it would strengthen Pakistan's economy, besides giving a loud and clear message to the entire world that Pakistan was a good destination for investment.
He declared that Etisalat's offer would be referred to the Cabinet Committee on Privatisation (CCoP) in a day or two.
The information minister said the PTCL sell-off would increase its profitability. He said the government would protect rights of the PTCL employees.
In his remarks, information technology minister Awais Khan Leghari said the PTCL sell-off would pay good dividends to all the parties - the government, the employees and the people of Pakistan.
Etisalat, China Mobile Company and SingTel were three contenders for the PTCL's shares - the biggest ever offer in the history of Pakistan govt.'s privatisation programme.
Each of these three parties had deposited earnest money of $40 million to qualify for this historic transaction.
Etisalat's will be handed over 26 percent PTCL shares with management control to make this key organisation active and efficient in true terms.
The PTCL had been a big attraction for international firms from the day one of the government announcement of giving it to the private sector for enhancing its profitability and quality of service.
Eight parties had qualified for the bidding, which was a strong indication that the transaction would see tough competition on the bidding day.
Three parties were pre-qualified out of eight telecom companies including SingTel (Singapore), Emirates Telecommunications Corporation (Etisalat), Telecom Malaysia, Mobile Telecommunication Company (Kuwait), Saudi Oger Limited (Saudi Arabia), Turkcell, China Mobile Communication Corporation, and Saudi Telecom Company. A consortium comprising Alamal and Detecon was short-listed conditionally.
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