Sunday, March 28, 2010

Etisalat Dispute Over Pakistan Investment Ongoing

A long running dispute between UAE based Etisalat and the Pakistani government over the 2006 sale of a 26% stake in Pakistan Telecom (PTCL) is continuing as Etisalat is reported to be withholding a fifth overdue payment.

The dispute over the ownership of several properties in Pakistan that were part of the deal.

According to the terms of the agreement, Etisalat was due to pay US$1.4 billion within one month after the signing of the deal and the remaining amount of US$1.2 billion will be paid in equal installments over 4 and a half years, with one installment every 6 months.

"Until now, the government [of Pakistan] has not released a list of properties to be converted [to PTCL ownership]. When the list is released, the money will be paid," Mohammad Omran, chairman, Etisalat, told Gulf News, as cited by ITP.

Pakistan's Ministry of Privatisation confirmed that Etisalat's next payment was due on March 31, and that of the 311 properties in question, 118 were already in the possession of PTCL and 17 properties were "under some litigation", the Gulf News report added, quoting an emailed response from the Pakistani ministry.

Long standing plans by Etisalat to increase its holding to a controlling 51% stake are on hold until the dispute is settled.

PTCL's mobile subsidiary, Ufone ended Q3 2009 with around 19.1 million subscribers, which the Mobile World calculates gives the company a 19.9% market share.

No comments:

Post a Comment