Omantel Injected $20 mn into WTL to Write Off Liabilities Under its Exit Plan. Oman Telecommunication Company, Omantel acquired most of the stake in World Call telecom Limited for $193 million in 2008. Now the telecom provider, World Call Limited is free of liabilities as Omantel injected $20 million to it for settling its liabilities.
Omantel Injected $20 mn into WTL to Write Off Liabilities Under its Exit Plan
Omantel has taken this step as World Call Limited faced a lot of loss and kept on going down due to great competition in market on three basic segments i.e; data (internet service provider), entertainment (cable operator) and voice (telephone).
While telling about this, WTL Chief Executive Officer Babar Ali Syed said that:
Omantel injected $20 million into WorldCall Telecom to write-off liabilities under its exit plan
WTL’s share price increased by 7.0% or Rs 0.21 on Monday. The stock was the volume leader with 35.26 million shares changing hands.
Barbar further added that:
“Now, they [Omantel] have nothing to do with WTL. We have assumed control of the company [being management] in November 2017,”
We have an asset base of $86 million in the book
World call telecom Limited has set new targets of Rs 4 billion as a new year resolution. In 2017 company has earned Rs. 2.3 billion. Barbar said that company has witnessed growth of 75%.
To achieve new year target, company has planned to spend $10-11 million to improve their position in market. Barbar further said that:
Out of this, $7.5 million would be the capital expenditure and $3.5 million would be the working capital. We foresee 40% business from cable and media, another 40% from LDI and 20% from fibre business