Warid Telecom, which started its operations 8 years ago in Pakistan has been put on the block by Abu Dhabi Group in a sale likely to fetch up to $1 billion. Currently Warid Telecom has the minimum number of customers and stands on number 5 in terms of revenue.
Media reports from the past month suggested that Abu Dhabi Group is in talks with 3 companies, including Etisalat and Telenor. But today Etisalat has officially announced that its affiliate PTCL has expressed interest in buying the mobile operator Warid Telecom. It merits mentioning here that Etisalat holds 26% stake in PTCL and has the management control of the company in Pakistan.
Previously Warid Telecom remained in talks with Mobilink for a merger during 2011, but later Warid Telecom announced that it has decided not to pursue any further merger discussions with Orascom Telecom/Vimpelcom or other players in the market.
Etisalat’s spokesman Ahmed bin Ali said in an emailed statement:
Etisalat Group holds a stake in PTCL with managerial control and PTCL has expressed an interest in Warid Telecom. Etisalat Group cannot offer further comment and will not comment on speculation regarding Warid Telecom.
According to another report, Etisalat had hired Goldman Sachs Inc to advise on a potential bid for Warid. If everything goes as planned it is likely that we will hear the news of acquisition with in a month.
