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Etisalat Settles Long Running Pakistan Dispute

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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

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Tags: etisalat  ptcl  Pakistan