China Mobile acquires Pakistan's Paktel

23 Jan 2007
00:00

(Associated Press via NewsEdge) China Mobile has agreed to buy 88.86% of shares in Paktel, Pakistan's fifth largest mobile carrier, the company's listed unit said.

The deal values Paktel at $460 million, China Mobile said in an announcement.

It said the deal was subject to regulatory approval but was expected to be completed by late February.

Global telecom investor Millicom International Cellular earlier announced it was considering selling Paktel due to difficult business conditions in Pakistan and frequency interference problems.

The Luxembourg-based company decided to sell Paktel after talks over gaining increased bandwidth from the Pakistan Telecommunications Authority failed to resolve interference problems. Millicom said that as a result, it would sell or close the company.

Millicom has operated in Pakistan since 1990. As of September 30, Paktel had 1.53 million total subscribers, up 62% from 944,718 the year prior, placing it fifth in terms of active subscribers.

© 2007 The Associated Press

© 2007 Dialog, a Thomson business. All rights reserved

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