Emirates Telecommunications (Etisalat) has taken control of Pakistan's state-owned telecommunications operator Pakistan Telecommunication Co. Ltd (PTCL).
In March, Pakistan signed an agreement to transfer 26% of PTCL – worth US$ 2.6 billion – to Etisalat in the country's largest privatisation to date.
"The completion of the successful privatisation of PTCL is a milestone in the privatisation and investment programme of Pakistan," the Privatisation Commission said.
Etisalat paid US$ 1.4 billion up front for the stake, with the rest of the amount to be provided in nine semi-annual instalments.
PTCL is Pakistan's second-largest listed company and has a market value of US$ 4.3 billion. The deal with Etisalat involves 1.33 billion shares out of 5.1 billion. A deal struck in June 2005 was plagued with difficulties after Etisalat failed to meet payment deadlines.
Source: Reuters - WDR/Intelecon Regulatory News
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