Zong Pulls Out Of Warid Bidding

Zong has decided to withdraw from bidding for Warid Telecom. The company dropped out of the bidding process for a 100 percent stake in Warid on the last day. Zong didn’t clarify the reasons of changing its strategy but said that company is now looking forward to investing in its technology transformation. There were clear speculations that Zong had saved the money for investment in upgrading infrastructure for 3G operations, while some experts say that Warid’s high-asking prices was the bone of contention.

Zong’s chief public relations officer, Sikandar Naqi said,

CMPak decided not to opt for the bidding for Warid in Pakistan after conducting business evaluation of the proposition,” he further said, “The company has, however, decided to invest aggressively in Pakistan in the near future to transform CMPak within the technology industry and to achieve growth through investing in 3G and beyond.”

Back in September 2013 Zong announced its interest in buying Warid, however now Etisalat and Vimplecom are the only two contenders left in the race.

It is expected that the outcome of the bidding will surface after Eidul Azha, somewhere around the last week of October.

“The main reason for China Mobile, as well as for others if they choose not to invest in Warid, will be that most of the companies will like to keep money for the 3G auction,” said Asif Qureshi, Executive Director at Optimus Capital Management.

“Secondly, the regulatory environment in Pakistan is not very conducive, including service disruptions due to security concerns as well higher taxes,” he said, citing it as a possible reason for Warid’s sale in the first place.zong

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