Kuwait’s MTC Group is said to be considering bidding for Pakistan cellco Paktel, a unit of Millicom International Cellular Company, writes Tawanda Chihota.
In November, Millicom stated that it expected to end its 16-year presence in Pakistan in 2007 as a result of difficult operating conditions in the market.
Pakistani authorities have refused to delay payment of a US$29m licence instalment from Millicom and the cellco is reported not to have been given full access to part of its portfolio. Paktel is Pakistan’s fifth largest mobile phone operator, counting approximately 1.5 million subscribers as of end-September 2006.
Earlier this month MTC announced that joint bookrunners ABC Islamic Bank, Arab Bank, Calyon, Gulf International Bank, Kuwait Finance House, and National Bank of Abu Dhabi had successfully closed syndication of a US$1.2bn Murabaha Facility for the Kuwaiti MTC.
A total of 29 financial institutions from the MENA region, Asia and Europe participated in the financing.
Proceeds of the facility will be mainly used to refinance the existing US$750m Murabaha facility for an additional period of 12 months as well as to fund other corporate deals and transactions.
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