SingTel acquires 30pc stake of Warid Pakistan
Monday, 2 July 2007
Singapore Telecommuni- cations (SingTel) has finally entered Pakistan by overtrumping Britain's Vodafone Group and Kuwait's Mobile Telecommunications Company (MTC) in its pursuit to acquire stake in Pakistan's Warid Telecom, reports bdnews24.com.
SingTel is now paying about $758 million (75.8 crore) for 30 per cent share in Warid, and the purchase "will be satisfied through SingTel's internal and external sources of funds," said an announcement.
This deal has stopped a prolonged speculation about Warid's probable offshore partner. It also gives Warid an enterprise value of $2.9 billion (290 crore).
The 30 per cent holding will consist of new and existing shares, in equal proportions, SingTel said.
The United Arab Emirates' (UAE) Education Minister Sheikh Nahayan Mabarak Al Nahayan's Abu Dhabi Group owns Warid. Sheikh Nahayan and SingTel's Group CEO Chua Sock Koong signed the deal in Abu Dhabi Thursday.
"Our partnership with SingTel marks a new milestone in the development of our company," said Sheikh Nahayan in a statement.
Launched in 2005 Warid has bagged 9.7 million customers, representing an estimated 16.6 per cent market share, and making it the third largest mobile operator in Pakistan.
Group CEO Chua Sock Koong said, "SingTel has made substantial investments in markets with high growth potential in South Asia, such as India and Bangladesh."
She also found "strong upside" in terms of Warid's performance, and praised it for "turning EBITDA-positive in only 17 months after its commercial launch" in Pakistan.
Warid deal has another motivation for SingTel management. In 2006 SingTel failed to secure 26 per cent stake in Pakistan's state-owned carrier PTCL. Its $1.167 billion bid was dwarfed by $2.599 billion over-inflated bid from nearest rival Etisalat, the UAE's state-run carrier.
SingTel is now paying about $758 million (75.8 crore) for 30 per cent share in Warid, and the purchase "will be satisfied through SingTel's internal and external sources of funds," said an announcement.
This deal has stopped a prolonged speculation about Warid's probable offshore partner. It also gives Warid an enterprise value of $2.9 billion (290 crore).
The 30 per cent holding will consist of new and existing shares, in equal proportions, SingTel said.
The United Arab Emirates' (UAE) Education Minister Sheikh Nahayan Mabarak Al Nahayan's Abu Dhabi Group owns Warid. Sheikh Nahayan and SingTel's Group CEO Chua Sock Koong signed the deal in Abu Dhabi Thursday.
"Our partnership with SingTel marks a new milestone in the development of our company," said Sheikh Nahayan in a statement.
Launched in 2005 Warid has bagged 9.7 million customers, representing an estimated 16.6 per cent market share, and making it the third largest mobile operator in Pakistan.
Group CEO Chua Sock Koong said, "SingTel has made substantial investments in markets with high growth potential in South Asia, such as India and Bangladesh."
She also found "strong upside" in terms of Warid's performance, and praised it for "turning EBITDA-positive in only 17 months after its commercial launch" in Pakistan.
Warid deal has another motivation for SingTel management. In 2006 SingTel failed to secure 26 per cent stake in Pakistan's state-owned carrier PTCL. Its $1.167 billion bid was dwarfed by $2.599 billion over-inflated bid from nearest rival Etisalat, the UAE's state-run carrier.