SingTel to acquire 30 per cent in Pakistan''s Warid Telecom

Mumbai: Singapore Telecommunications, Southeast Asia''s leading telecom group, is acquiring a 30-per cent stake in Warid Telecom, Pakistan''s third largest mobile phone operator, for over $700 million, reports quoted sources at the company as saying.

The source did not say precisely how much the deal is worth, but said it would definitely be "over $700 million". "A deal in this regard is expected to be signed today or tomorrow," the source added.

SingTel, expanding into rapidly growing mobile markets outside its saturated home base, has often said it is interested in Pakistan,

Warid, which is owned by the private Abu Dhabi Group, has around 10 million subscribers in Pakistan. The company, which started operations in 2005, has about 17 per cent of Pakistan''s 58.4 million mobile subscribers at end-April. Subscriber growth is rapid, having ballooned from only 12.8 million in 2005. Mobile penetration is now around 35 per cent.

SingTel, which is facing saturation in home market of just 4.5 million people, is looking at other markets for expansion and better returns.

Singapore''s biggest listed company has spent S$17 billion (US$11.05 billion) in recent years buying operators in high-growth Asian nations and in the bigger Australian market.

Pakistan has a moratorium on the issue of new mobile operator licences, so the only way international telecoms companies can enter the market is by buying stakes in existing players.

SingTel is said to have outbid rivals MTN of South Africa and Britain ''s Vodafone for the Warid stake.

Besides SingTel, China Mobile, the world''s biggest wireless carrier, had earlier this year agreed to buy an 89 per cent stake in loss-making Pakistan operator Paktel Ltd. for $284 million.

Pakistan''s other operators are Mobilink, now a 100-per cent subsidiary of Egypt''s Orascom Telecom, Norway''s Telenor, Ufone, part of Pakistan Telecommunication Co. Ltd., and private Instaphone.

The Abu Dhabi Group is one of the largest foreign investor groups in Pakistan and also owns Bank Alfalah Ltd. and Wateen Telecom. It also owns a stake in United Bank Ltd.

Sources said the transaction would involve both the issuance of fresh equity in the Pakistani company as well as selling existing shares in Warid.

The acquisition of a 30-per cent stake for $700 million values Warid at more than $2.3 billion.