China Mobile Buys Pakistan Operator

Millicom says that it has signed an agreement for the sale of its 88.86% shareholding in Paktel Limited to China Mobile Communications Corporation.

The transaction implies an enterprise valuation for Paktel Limited of US$460 million.

The total cash consideration payable to Millicom as a result of the transaction (including the repayment of intercompany debt) is approximately US$284 million.

Completion of the transaction is subject to certain regulatory approvals and procedures. If such approvals are obtained, completion is expected to occur in late February 2007.

Commenting on the transaction, Marc Beuls, President and Chief Executive Officer of Millicom, said: "We are pleased to announce the sale of Paktel to China Mobile following strong interest from a number of parties during the sale process. The implied enterprise value of US$460 million for Paktel reflects fair value for the business."

Millicom International Cellular currently has cellular operations and licenses in 17 countries."

Posted to the site on 21st January 2007