Etisalat fails to meet PTCL payment deadline

ISLAMABAD—A spokesman of the Privatisation Commission (PC) has said that under the Share Purchase Agreement (SPA) signed between Etisalat International Pakistan (EPI), a subsidiary of Etisalat, and the Government of Pakistan on June 30, 2005. EIP was required to make final payment on October 28, 2005, says a statement issued here Saturday.
EIP was the highest bidder for 1.326 billion `B’ shares representing 26% of the share holding in Pakistan Telecommunication Company Limited (PTCL). They offered US $2.598 billion equating to US $1.96 per share in a transparent and competitive bidding held on June 18, this year.
The spokesman added that inspite of the necessary facilitation within the transaction framework. Etisalat failed to make payment of the balance and bid amount within the mutually agreed extended time line of October 28, 2005, he said. The matter is being referred to the Privatisation Board and to the Cabinet Committee on Privatisation for their guidance on the next steps of the transaction.—APP