China Mobile buys 88% stake in Pakistan operator
(Shanghai Daily)Updated: 2007-01-22 14:36 China Mobile has taken over 88.6 percent of Paktel Ltd, the fifth largest mobile communication operator in Pakistan, by paying US$284 million in cash and shouldering its debt.
Paktel, previously a subsidiary company of the Nasdaq-listed Millicom International Cellular SA, has an estimated market value of US$460 million, China Mobile told Sina.com in a statement earlier today.
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China Mobile Communications Corp, the world's biggest cellular operator by users, lost its bid for Paktel in 2005 and for Millicom last year.
The transaction is expected to be accomplished by the end of next month, Sina.com reported.
The Luxembourg-based Millicom said it suspended business in Pakistan to concentrate on its 16 other markets in Africa, Latin America and Asia.
Marc Beuls, CEO with Millicom, declared the deal in a statement, saying that the cooperation with China Mobile was a pleasure.
Lou Qinjian, deputy minister at the Ministry of Information Industry, said in a December 19 speech posted on the ministry's Website that government departments should adjust loan, insurance and foreign exchange policies to support such overseas technology investments.
Shares of China Mobile rose 1 percent to HK$71.50(US$9.17) on the Stock Exchange of Hong Kong as of 10:04am today.
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