Etisalat Settles Long Running Pakistan Dispute
Published on: 31st Jul 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
The Pakistan government and UAE based Etisalat are reported to have settled a long running dispute over the price paid for a stake in Pakistan Telecommunication Company Limited (PTCL).
Etisalat offered USD2.6 billion for a 26% stake in PCTL back in 2006 in staggered payments, but has withheld USD800 million in a dispute over the transfer of assets from the government to the telecoms operator.
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 in early 2006 and the remaining amount of USD1.2 billion was due to be paid in equal installments over 4 and a half years, with one installment every 6 months.
The settlement reportedly agrees to a payment of USD700 million by Etisalat, which is a reduction of USD100 million based on the valuation of the assets not handed over.
Long standing plans by Etisalat to increase its holding to a controlling 51% stake have been on hold until the dispute is settled.
On the web: The Tribune