Etisalat has categorically denied reports and said that the company is not pulling out of Pakistan Telecommunication Company Ltd (PTCL), and is hopeful that within the one-month timeframe, it would resolve all pending issues.
According to the news posted on a newspaper based in Dubai, Mohammad Hassan Omran, Chairman and chief executive of Etisalat, said, "no decision has been taken to pull out because we have already signed a contract with PTCL".
"We have certain issues still pending between us and the government of Pakistan. We are working on those issues and we hope these will be resolved within one month," he told the newspaper.
Omran did not elaborate on the sticking points but said, "There are issues within the contract signed by both parties."
He said Etisalat has been given an extension until October 28, 2005, to finalise the transaction of PTCL and take over the entity.
Top officials from Etisalat are likely to hold meetings with PTCL and government officials in Pakistan in the coming days.
Another newspaper confirmed that Etisalat was negotiating with Pakistan Telecommunication Company (PTCL) to resolve some serious issues.
"There are some serious issues to be addressed, and we are sparing no efforts to resolve them. We have got one month to negotiate and tackle these disputes before a final decision is taken," Ahmed bin Ali, Manager, Corporate Communications, Etisalat, said quoting his company''s Chairman and CEO Mohammad Hassan Omran.
He declined to comment on the nature of the disputes between the two parties, but said Etisalat would come out with a detailed statement soon to clarify its stand on the present crisis.
Etisalat-Dubai Islamic Bank consortium''s bid of $2.598 billion or $1.96 per share far surpassed China Mobile''s bid of $1.4 billion ($1.066 per share) and Singapore based SingTel''s bid of $1.16 billion ($0.88 per share). With this purchase Etisalat is to get 58 percent voting rights on the board of directors and a 26 percent stake of PTCL equity.
Etisalat has appointed a group of seven banks to act as lead managers in a $2.114 billion facility to finance 90 percent of its share in the acquisition bid.
According to sources, the deal was 25 percent financed through equity, and 75 percent through bank lending. Dubai Islamic Bank was to provide 10 percent of the equity and 10 percent of the debt component or a total commitment of some $520 million.