Investors see as Etisalat team expected

ISLAMABAD—Upset investors are pinning high hopes as a top-level Etisalat negotiation team is expected to come here in an attempt to resolve some issues that have delayed the $2.59 billion take over of Pakistan Telecommunication Company Limited (PTCL).
Countering criticism over the silence on the part of the Privatisation Commission (PC) on what is preventing Etisalat from taking over the PTCL, Tahsin Iqbal, secretary, Privatisation Commission, has said since PTCL deal was the largest in history of privatisation, its finalisation would take some time.
Etisalat and PTCL had mutually agreed and recently announced the extension of the date of finalisation of the process of privatisation up to October 28 for allowing more time for resolution of some issues.
Etisalat had won the bid for 26 per cent of PTCL shares and management rights on June 18 for $2.59 billion at Rs117.01 per share. The telecommunication giant from the UAE was required to pay 25 per cent of the sum within 14 days of the bid and the remaining 75 per cent in 60 days.
Etisalat is demanding more shares of the PTCL at market price and that their reported move to delay the first instalment, had forced the market to nose-dive and all the share prices fell across the board, media reports have suggested.
Three days after the bidding, Etisalat had raised several issues. Those included deferred payment structure; ability to pledge the acquired shares; right to increase shareholding via a ‘call option’ for additional ‘A’ class shares; allowing dual listing of PTCL shares in UAE; management agreement; exemption from withholding tax; waiver of duties & taxes; custom duty waiver and ability to transfer acquired shares,” a report said.
Another report says that the government might decide to pay dividend out of the profit of Rs26.60 earned by the Pakistan Telecommunication Limited (PTCL) for the year ended June 30, 2005 to small shareholders.
But some other corporate experts argued that the Board might instead wait till the end of October when it would be in a position to declare a healthier interim dividend along with the first quarter (July-Sept) results.—INP