KARACHI Nov 20: The Privatization Commission on Saturday invited proposals from potential investors for the sale of a 26pc government stake in Pakistan Telecommunication (PTCL).
A statement from the commission said the buyer of the strategic stake will be given management control of the company.
The move came a few days after the government made a decision to sell PTCL as an integrated company in an effort to maximize its value and generate international interest.
The privatization of PTCL was put on hold for many months as the government mulled whether to split the company into at least three separate entities to spur competition in a deregulated environment.
The government's decision to keep PTCL integrated was aimed at attracting foreign players such as Singapore's SingTel, which earlier named PTCL as a possible investment target, analysts say.
The commission said investors should submit proposals quickly, with the final proposals to be considered by Jan 28.
Those who had already submitted their EOI (expression of interest) shouldn't apply, although they have been asked to reiterate their interest, the statement said.
In the past, Egypt's Orascom Telecom and other Middle eastern telecommunications operators have also shown interest to buy the phone company.
The government owns 88pc of listed PTCL, the country's largest phone service provider, which has a wholly owned cellular phone unit and an internet service provider.
PTCL, which is the second-largest listed company on the Karachi Stock Exchange, posted a net profit of Rs29.17 billion for the fiscal year ended June 30.
A consortium consisting of JP Morgan and Goldman Sachs is advising the government on the privatization.
The move to privatize came as part of the deregulation of the telecom sector, which attracted many private players to provide phone services, ending the monopoly of the PTCL.
Norway's Telenor ASA and some local groups are likely to start their operations within the next 8-12 months.- Dow Jones Newswires
