Etisalat Agrees to Pay $800 million Installment for PTCL Stake

By Babar Bhatti on January 28, 2010 under Emerging Markets Telecom, Foreign Investment, PTCL, Pakistan, Telecommunications
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We had written about the issues holding up $800 million payment from Etisalat. Pakistan’s Minister of Privatisation has stated that Pakistan will receive a payment of $800 million by the end of March from the UAE’s Etisalat for a stake in Pakistan Telecommunication Co (PTCL). Dawn reports:



In 2006, Etisalat, the Gulf Arab region’s second-largest telecom firm, signed an agreement to purchase a 26 per cent stake in PTCL for $2.6 billon, but so far only $1.4 billion has been paid, due to problems linked with a transfer of 3,000 real estate units.



Under the contract, the government agreed to transfer the properties before Etisalat made the full payment.



“We have agreed on a framework with Etisalat by which the transfer of $800 million will happen by the end of March … the property issues will be resolved soon,” Waqar Ahmed Khan told Reuters in an interview on Wednesday.



In December, Etisalat said the remaining $1.2 billion would be paid in equal instalments over a period of 4.5 years in consideration for “certain corresponding deliverables by the Pakistani counterpart.”

Source : telecompk.net