Etisalat Rejects Offer to Settle Dispute with Pakistani Government
Published on: 2nd Jan 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
UAE based Etisalat is reported to have turned down an offer from the Pakistan government to resolve a dispute over property transfers dating back to its 2006 investment 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.
Of the 3,248 properties that were to be transferred to PTCL as part of the privatisation agreement, some 131 are still held by the government.
It was reported last week that the company had rejected a government proposal to cancel the transfer in exchange for lowering the outstanding amount.
The Business Recorder wrote that Eitsalat has refused to accept the proposal on grounds that the value of outstanding properties is quite high and they should be 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: Business Recorder