Etisalat Settles Long Running Pakistan Dispute
It has been reported that The Pakistan government and UAE based Etisalat have finally settled the long running dispute over the price paid for a stake in Pakistan Telecommunication Company Limited (PTCL).
Back in 2006 Etisalat offered US$2.6 billion for 26% stake in PTCL in staggered payments but has withheld US$800 million in a dispute over the the transfer of assets from the government to the telecoms operator.
According to the terms and conditions of the agreement, Etisalat was due to pay US$1.4 billion within one month after the signing of the deal in early 2006 and the remaining amount of US$1.2 billion were to be paid in equal installments over the period of 4 and a half years, with one installment every 6 months.
Under the settlement agreement Etisalat is to make a payment of US$700 million, which is a reduction of US$100 million based on the valuation of the assets not handed over by the government.
Etisalat long standing plans to increase its holding to a controlling 51% stake have been on hold until the disagreement fully is straightened out.