PTCL bidding on June 10

The Privatisation Commission has scheduled the bidding of Pakistan Telecommunication Company Limited (PTCL) on June 10, for acquiring 26 percent shares with management control as a wholly integrated telecom operator in Pakistan, a statement of the Privatisation Commission issued here on Thursday said. The commission has also scheduled investors'' forum on May 25 to respond to the queries of the potential bidders and to inform them about the bidding process. The statement said that several bidders had requested for extending the PTCL bidding date, as they needed more time in order to go through their internal approval processes prior to the bidding.
The Privatisation Commission accepted their request and fixed June 10 as the bidding date instead of May 28, to facilitate the bidders.
Sources in the Privatisation Commission told Business Recorder that sound financial position of the company generated unprecedented interest among the investors as 14 parties sent their expressions of interest (EoIs) in January to acquire 26 percent shares of the PTCL with management control as a wholly integrated telecom operator.
The 14 prospective buyers for PTCL included big names like Emirates Telecommunication Corporation (ETISALAT), the UAE, Singapore Telecommunications Ltd (SingTel), Singapore, Mobile Telecommunications Co, Kuwait, MTN International (Pty) Ltd, South Africa, Saudi Oger Limited, Saudi Arabia, China Mobile Communication Company, China, Millicom Int''l, Saudi Telecom, Saudi Arabia, Telecom Malaysia and other investors from the region.
The sources said that the PTCL is the leading provider of basic telephone services to the private and public sector in Pakistan with over 4.4 million telephone lines in service. Besides providing fixed line and ancillary services, the company owns Pakistan Telecommunication Mobile Limited, one of the five GSM cellular providers in Pakistan and Paknet, a countrywide Internet service provider.
Its strong financial position demonstrated during FY 2004, excluding subsidiaries as per unconsolidated finances of the PTCL indicate: Revenue at Rs 74,124 million, operating profit Rs 41,938 million, net profit after-tax Rs 29,169 million, total assets Rs 141,595 million, total equity Rs 83,600 million with a network of 5.27 million lines and 4.43 million access lines in service.
The sources said that besides, PTCL, the privatisation of public enterprises, Pakistan State Oil, (PSO) Carrier Telephone Industry, Pak Arab Fertiliser, National Refinery Limited and National Investment Trust Limited is also being actively pursued.
The sources said that though it would be PC''s endeavour to speed up the privatisation process, yet it would ensure that the legitimate concerns of various stakeholders are taken care of before their privatisation.
The sources said that the long-term vision of the government was good governance and regulation, while providing an enabling environment for the generation of investment opportunities in Pakistan to harness the private sector as the engine of growth for the economy.
Economic growth is the most potent tool for fighting poverty as it stimulates employment, which is necessary to reduce poverty, they added.
The sources said that although the process of privatisation of more than 200 public sector enterprises started in 90s, its most active phase has been the last two years when privatisation worth Rs 75 billion from 21 transactions was completed.