Singtel Takes 30 % of Waridtel Shares

Singapore Telecommunications (SingTel) has announced that it is buying a 30% stake in Pakistan's Warid Telecom for an estimated US$758 million.
In just two years from its commercial launch in 2005, Warid Telecom has reached nearly 9.7 million in reported subscriber numbers, representing an estimated market share of 16.6%, and making it the third largest mobile operator in Pakistan, as of April 2007.
With a large population in excess of 160 million growing at over 2 per cent per annum, and a young median age of 20 years, Pakistan represents the sixth largest population base in the world. With a current low mobile penetration rate of 36 per cent, and a strong regulatory regime, the Pakistani cellular market is one of the most attractive in the world and has recently attracted sustained interest from international telecom operators.
SingTel will invest US$758 million (subject to closing adjustments on completion of the transaction) to acquire a 30% stake in Warid Telecom, valuing the company at an enterprise value of US$2.9 billion. The purchase will be satisfied through SingTel's internal and/or external sources of funds.
Warid Telecom is part of the Abu Dhabi Group, led by HH Sheikh Nahayan Mabarak Al Nahayan, a senior member of the Emirate of Abu Dhabi's ruling family.
Including Warid Telecom, SingTel, together with its associated companies, will have a major presence in eight regional cellular markets with a total of more than 130 million subscribers.
SingTel's Group Chief Executive Officer, Ms. Chua Sock Koong, said: "SingTel has made substantial investments in markets with high growth potential in South Asia, such as India and Bangladesh. Warid Telecom in Pakistan is a natural fit. It is also an attractive business with strong brand recognition. The management of Warid Telecom has established an impressive operational track record, turning EBITDA-positive in only 17 months after its commercial launch. We see strong upside in terms of the company's performance and look forward to its continued contribution towards the development of mobile communications in Pakistan."