Warid-Etisalat ends all the merger talks
Warid Official said:
[pull_quote_center]The ongoing discussions between the Abu Dhabi group and PTCL for the merger and acquisition of Warid Telecom Pakistan have been called off. The decision has been taken by the shareholders of Warid Telecom Pakistan since an agreement could not be reached on the desired valuation for the company.[/pull_quote_center]
The shareholders of Warid, firmly believe that the company has strong fundamentals and have decided to focus on further enhancing its value and will continue to provide innovative telecom services to the company’s loyal subscriber base.
- Earlier, two other cellular giants operating in Pakistan had shown interest in buying Warid. However, one of the world’s largest cellular companies did not take part in bidding and the other player also backed out after making an initial bid.
- A possible merger was predicted to take place between the two UAE-based companies (Etisalat and Warid) in which the Etisalat group was likely to acquire 51 per cent shares of Warid. However, negotiations between the two subsequently ran aground.
Warid launched its cellular services in Pakistan in May 2005 and with almost 12.5 million subscribers, was the country’s smallest operator. However, unlike other telcos, it has a fiercely loyal postpaid customer base.
In 2007, Singapore Telecommunications bought a 30% stake in Warid for about $758 million. That stake purchase gave Warid Telecom an enterprise value of about $2.5 billion. SingTel sold back that stake in January for $150 million and a right to receive 7.5% of the net proceeds from any future sale, public offering or merger of Warid.