Singapore Telecommunications (SingTel) has sold its 30% stake in Pakistan’s Warid Telecom for US$150 million. The buyer is the Abu Dhabi Group, which already owns the other 70% of the company.
Singtel to Sell Stake in Warid Telecom
As part of the deal, SingTel is also entitled to a 7.5% share of the net proceeds if the Abu Dhabi Group sells the company or merges it with another local mobile network.
SingTel had previously provided a guarantee of approximately S$90 million and an equity undertaking of around S$51 million to support the company with its lenders. The sale also releases SingTel from those financial obligations.
However the company will post a net loss on the investment of US$186 million following previous write-downs.
The unaudited net tangible asset value of Warid was approximately 2.9 billion Pakistan rupees (US$29.6 million) as at September 30, 2012,”
In the statement, SingTel said that the sale was a result of a strategic review of the investment, its competitive position, and opportunity. SingTel added that it would take an estimated loss of about S$230 million (US$186 million) on the transaction.
The Singapore-based company currently owns significant stakes in five other foreign telcos: India’s, Pacific Bangladesh Telecom, Indonesia’s , Thailand’s , and Globe Telecom in the Philippines.