Government of Pakistan
Privatization Commission

Share Purchase Agreement INKED FOR CARRIER
TELEPHONE INDUSTRIES (CTI) BY GOP PTCL AND SIEMENS

Islamabad, November 08, 2005

A Shares Purchase Agreement (SPA) between Siemens and Privatisation Commission (PC) was signed here today. Mr. M. Tahsin Khan Iqbal Secretary Privatisation Commission, Mr. Junaid Khan CEO Pakistan Telecommunication Company Limited (PTCL) and Sheikh Tahir Javed Divisional Director of Seimens Pakistan Engineering Company signed on behalf of the respective parties for the sale of 53 % shares held by Pakistan Telecommunication Company Limited (PTCL) in Carrier Telephone Industries (CTI).

The Privatisation Commission offered 53 % shares (approximately) held by Pakistan Telecommunication Company Limited (PTCL) in Carrier Telephone Industries (CTI) for sale to a qualified investor as 'a going concern' basis with management control, as a part of the privatisation process of the Telecommunication sector in Pakistan.

Addressing on this occasion Mr. M. Tahsin Khan Iqbal said that the most significant part of this transaction was that whereas the world's one of the best electronic company, Siemens now actively be running this factory, the surplus land measuring 46,111 Sq Yard, which had been attached to CTI but not hitherto utilized by CTI would revert to Government of Pakistan (GoP). The CTI was carved out of PTCL so as to be able to maximize revenues for the GoP, he added.

Mr. M. Tahsin Khan Iqbal further informed that after receiving Rs.500 million the SPA was being signed and the management of CTI was simultaneously being handed over to the Seimens.

The legal status of the Capital Structure is: PTCL- 8,016 Ordinary Shares of Rs.1000/= each and Siemens AG, Germany- 7251, 5 % Cumulative Preference Shares of Rs.1000/= each. Siemens finally offered Rs.62,375/- per share and a total price of Rs. 500 million for 8016 shares of PTCL in CTI.

As per terms of the Articles of Association of CTI, Siemens concurrence was required for the sale of PTCL shares in CTI to a Competitor (Competitor being any person or Company who deals either as principal, or agent in electrical plant and apparatus of all types, including but without prejudice to the generally of the foregoing, long distance Telecommunication Equipment and Electrical Component and competes in any such fields with Siemens.

CTI's principal business is manufacturing of transmission equipment for telecommunication services and equipped with the state-of-art machinery, which include Digital Microwave Radio, Mux for Optical Fiber, Rural Digital Branch Exchange, Single Channel VHF Radio. CTI is located at Industrial Area Sector: I-9/2, Islamabad.

Mr. Alois G. Zollner Senior Vice President for SIEMENS while appreciating the professional approach of Privatisation Commission during the process of the privatisation of CTI said that investment in CTI was a corner stone investment in Pakistan and Siemens has supported the ongoing privatisation program of Pakistan.

The senior officials of Privatisation Commission, representatives of Ministry of Communication & I.T, PTCL and media were present during the meeting.

Later, while talking to newsmen, Secretary PC M. Tahsin Khan Iqbal said that the consortium of Hassan Associates with Al-Jummaih Group of Saudi Arabia has been asked to deposit US $ 100 million for signing the Shares Purchase Agreement (SPA) for Karachi Electric Supply Company (KESC), which he hoped would be handed over to the buyer by the end of the current month.

Source: http://www.privatisation.gov.pk/Handout/HO-AR-05/Nov-05/Handout%20November%202005.htm