China Mobile (Zong) Keen To Acquire Ufone And PTCL: Sources
It has recently come to attention that Zong has shown interest to purchase PTCL & Ufone. China Mobile Pakistan Limited (CMPAK) is keen on acquiring the Pakistani telecom giant Pakistan Telecommunication Company Limited (PTCL) and UFone Pakistan which is a registered trademark of Pak Telecom Mobile Limited (PTML).
Three sessions have been held so far to prepare the framework for the whole process. Zong & Etisalat management has confirmed that there are talks happening on the matter.
Officials have revealed that in the first meeting regarding the acquisition was held in Dubai. Representative from both sides also met in China to move further with the process. The third meeting was held in a European country in which the agenda was finalized.
By the end of the third meeting it was decided a common working committee would be established to evaluate the assets of PTCL & Ufone. The committee will also have access to the market value of Ufone and PTCL and the final estimate would also be calculated for purchasing all the shares hold by Etisalat.
In the past at the when PTCL was being privatized Etisalat had purchased 26% shares in PTCL along with the management. Etisalat will now be independent in making any decisions regarding the company.
PTCL is the largest ICT services provider in Pakistan. It is encompassing fixed line voice telephony, Wireline and Wireless broadband internet, Broadband and multimedia services, digital television and multiple other corporate solutions for businesses and enterprises. Etisalat still has to pay 800 million dollars to the government of Pakistan to completely acquire the company. Etisalat management has also started talks with Zong over its shares.
Ufone’s profile is a subsidiary group of PTCL under Etisalat. The company is present in all major cities of Pakistan along with its comprehensive coverage across all major towns, villages and tehsil headquarters of the country. The company has more than 3,850 employees. They operate with 375 franchises and 26 company-owned customer service centers along with distribution networks of 150,000 outlets nationwide. The company has a rapid growth of its 3G coverage and customers and according to PTA’s statistics released in February 2016 Ufone has stood 4th with 20.59 million mobile customers in the country.
Zong is a registered trademark of China Mobile Pakistan Limited (CMPAK) and is the 3rdlargest company in Pakistan with 24.85 million customers as per statistics released by PTA in February 2016. It holds 3G users up to 5,430,155 along with 481,730 LTE /4G users. Zong has also won the QOS survey competition conducted by PTA in start of 2016 and was declared as the fastest 3G/4G network of the country. The company has paid special attention to the expansion and quality of its 4G network and has invested massive amounts of money for its ICT quality services.