Government of Pakistan
Privatisation Commission

ALL SET FOR PTCL BIDDING ON JUNE 18, 2005

Islamabad, June 13, 2005

The Privatisation Commission is holding the bidding of Pakistan Telecommunication Company Limited (PTCL) for acquiring 26% shares of Pakistan Telecommunication Company Limited (PTCL), by a strategic investor, with management control as a wholly integrated telecom operator on June 18, 2005 (Saturday). An Investors Forum was held on May 25, 2005 to respond to the queries of the potential bidders and to inform them about the bidding process.

The pre-qualified bidders have already completed the due diligence process of the company in the data room. The potential bidders will deposit an amount of Rs.40 million as earnest money latest by June 16, 2005 evening, to become eligible for participating in the bidding process. The bidding will be held in the presence of the respective representatives of the print and the electronic media.

The pre-qualified parties include SingTel (Singapore), Etisalat (UAE), Telekom Malaysia (Malaysia), Mobile Telecommunication Company (Kuwait), Saudi Oger Ltd (Saudi Arabia), Saudi Telecom Company (Saudi Arabia), Turkcell (Turkey), China Mobile Communication Corporation (China) while Consortium of Al-Mal Limited (Egypt) and Detecon (Germany) has been conditionally pre-qualified.

PTCL is the leading provider of basic telephone services to the private sector in Pakistan with over 4.4 million telephone lines in service. Besides providing fixed line and ancillary services, PTCL owns Pakistan Telecommunication Mobile Limited, one of 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 financials of PTCL indicates: Revenue PKR 74,124 million, Operating profit: PKR: 41938 million, Net Profit after Tax: PKR:29,169 million, Total Assets: PKR: 141,595 million, Total Equity: PKR: 83,600 million, with a network of installed 5.27 million lines and 4.43 million access lines in service.

The independent regulator, Pakistan Telecommunication Authority (PTA), has liberalized and deregulated the sector to facilitate an expected increase in competition subsequent to the sale of various telecom licenses. A consortium consisting of JP Morgan and Goldman Sachs International is advising Government of Pakistan on the privatisation of PTCL. The cabinet has already given its approval for sale of PTCL as integrated entity in August 2000. The government has 88 % shares of Company and after the sale of 26 % shares the government would retain 62 % shares in the company.


 Source: http://www.privatisation.gov.pk/Handout/HO-AR-05/June-05/HO-1362005All%20Set%20for%20PTCL%20Bidding%20on%20June%2018,%202005handout.htm