Recent sources have claimed that CMpak or Zong has surprisingly given up its chase to buy out Warid Telecom.Sources familiar with the story disclose that now Etisalat and VimpelCom are the only two contenders to bid for Warid Telecom.
CMPak, one of the eager franchises for Warid buyout left the bidding on the very last day, as per sources confirmations.
Mr. Sikandar Naqi, Chief Public Relation Officer, Zong, has also confirmed that CMP announced not to go for Warid auction in Pakistan after it carried out its business assessments.
Earlier, Zong had shown aggressive stance on Warid acquisition, a grand deal which could earn the firm a staggering 11 million user base to jump to second place in the Pakistani telecom market as far as subscribers are concerned.
Experts are almost stunned by this latest development. They are simply overwhelmed by the fact that Zong has discarded such a golden opportunity, keeping in mind that its parent firm (China Mobile) has got more that USD 70 billion dollars cash in its bags.
Mr. Sohaib Sheikh, a telecom expert, expressed his thoughts by saying that it would be too early to analyze the whole current situation. Zong has done an exceptional job in Pakistan and has been endeavoring to expand their network footprint and enhancing their user base. He further mentioned that there might be an unknown rationale behind it and it depicts company’s confidence and strong concentration on 3G to grab its increasing market share amongst the potential opponents.
The recent back up from Zong is also considered to save cash for investment in 3G operations, while others suggest that high bidding price was the main reason behind its rejection to purchase Warid.
Meanwhile, Zong didn’t yet disclosed the main reasons for pulling out of Warid bidding process but stated that the enterprise is looking to invest huge money in Pakistan in the coming future to transform CMPak within the technology market and to acquire strong growth by investing in 3G and beyond.
Speculations are optimistic that the outcome of the bidding — for Warid buyout— will become clearer after Eid, somewhere by the end of October, 2013.