The Pakistan Telecommunication Company Limited (PTCL) share price was higher in the kerb market at the weekend, following news that the government has announced June 18 to sell its majority stake. The share price of telecom giant oscillated between Rs70.25 to Rs70.75 in the kerb market from Friday's closing of Rs69.35.
About 148 million shares changed hands and the scrip registered an increase of 3 percent on last session of the week.
Several hundred mobile phones buzzed in half an hour following eruption of the development that the government has announced a package for PTCL employees and it planned to sell 26 percent shares in the company by June 18.
Though the share price registered sharp appreciation in the kerb market, but most of them feared disruption in law and order situation.
Security forces took control of PTCL's vital installations across the country on Saturday to ward off any attempt to disrupt utility's network after the action committee of workers threatened to jam lines by June 15 if the government did not withdraw the decision.
This created panic among some of the investors. They were of the opinion that the market would open positive on Monday and the index would stage a sharp increase but fear of strike from workers might halt upward trend.
A leading investor said Singtel is one of the frontrunners in the bidding process for the acquisition of management control and 26 percent stake in Pakistan Telecom.
Singtel seems committed to enter not just in Pakistan but the South Asian markets. The company is in talks to buy 60 percent stake in Pacific Bangladesh Telecom and increased its stake in Bharti Telecom Limited to 32.6 percent from 26.96 percent. Bharti Telecom in turn holds 45.1 percent stake in Bharti Tele-ventures (a publicly listed cellular company).
With the increase in Singtel's share in Bharti and with its eye on Bangladesh, it seems clear that the company is serious in entering the South Asian markets in a big way.
Furthermore, Singtel has spent $ 10.3 billion in the last four years, buying operators in high-growth Asian nations and expanding its investment in Australia.
Singtel is desperately looking to move out from its mature home market where nearly 9 out of 10 people own mobile phones. Its interests in all three major South Asian countries could be the result of a strategy of 'getting whatever can be got'.
Bangladesh mobile subscriber base increased by about 100 percent in 2004 as compared to 120 percent growth in the Pakistan's market.
Singtel would, however, prefer an integrated telecom operator in the shape of Pakistan Telecom with a fixed-line monopoly and a cellular share of 22-23 percent.
This is because it already has experience in the fixed-line sector and would greatly cherish some cushion in the market, while it gets used to a new organisation, in a new environment.
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