LAHORE, June 28: The Singapore Telecommunications (SingTel) and the Warid Telecom announced on Thursday that they have entered into a definitive agreement subsequent to which SingTel will acquire a 30 per cent equity stake in the Warid for an estimated $758 million.

According to a Warid spokesman, in just two years from its commercial launch in 2005, the Warid Telecom has reached nearly 9.7 million in reported subscriber numbers, representing an estimated market share of 16.6 per cent, and making it the third largest mobile operator in Pakistan, as of April 2007.

With a large population in excess of 160 million growing at over two per cent per annum, and a young median age of 20 years, Pakistan represents the sixth largest population base in the world. Fuelled by foreign direct investment, its economy has seen strong growth over the past few years.

With a current mobile penetration rate of 36 per cent, and a strong regulatory regime, the Pakistani cellular market is one of the most attractive in the world and has recently attracted sustained interest from international telecom operators.

SingTel will invest $758 million (subject to closing adjustments on completion of the transaction) to acquire a 30 per cent stake in the Warid Telecom, valuing the company at an enterprise value of $2.9 billion.

The investment is being made as part of a strategy to support Warid Telecom's continued growth and enhance its market position.

The purchase will be satisfied through SingTel's internal and external sources of funds.

Warid Telecom is part of the Abu Dhabi Group, led by Sheikh Nahayan Mabarak Al Nahayan, a senior member of the Emirate of Abu Dhabi's ruling family.

The SingTel later said in a statement that it had agreed to buy stake in Warid Telecom.

The deal gives Warid an enterprise value of $2.9 billion, SingTel said the statement.

The 30 per cent holding will consist of new and existing shares, in equal proportions, SingTel said.

“SingTel has made substantial investments in markets with high growth potential in South Asia, such as India and Bangladesh. Warid Telecom in Pakistan is a natural fit,” SingTel chief executive Chua Sock Koong said in a statement.

This year, China Mobile agreed to buy an 89 per cent stake in the Paktel for $284m for its first acquisition outside its home market.

Apart from Warid and Paktel, which is now known as CM PAK, Pakistan's other operators are Mobilink, now a 100pc-owned subsidiary of Egypt-based Orascom Telecom, Norway's Telenor, Ufone and Instaphone.—APP/Reuters