The ongoing possible buyout of the Warid Telecom of Pakistan by telecom giant Etisalat of UAE, may be blocked by PTA on the orders of high ups of Pakistan Government.
VimpelCom of Russia and Etisalat have submitted bids for Warid Telecom buyout which has already almost 12 million subscribers in Pakistan. However so far the bid has not been finalized. Etisalat is considered favourite for the buyout of Warid Telecom so far.
The decision of Pakistani Governoment to block Etisalat-Warid deal has emerged at the time when UAE’s state run telecom giant has refused to pay PTA the remaining USD 800 million for buyout of the 26 percent shares in the PTCL. The matter is so far un settlled due to property dispute.
Etisalat has held back the USD 800 million for over 8 years as Pakistan government has unable to transfer the property ownership of 100 out of the 3,000 properties due to few legal limitations.
Pakistan has however repeatedly offered amount of USD 73 million to Etisalat against disputed 100 properties but so far the dispute could not be settlled.
Etisalat, maintains that unless all of the properties are not transferred it is not going to pay a single penny.
As a last result, now Pakistan government may opt for blocking the possible buyout of the Warid Telecom by Etisalat.