Orascom unlikely to take part in Pakistan mergers

[Uzair Ahmed]

Any comments on Mr. Naugib Sawiris satatment?

 

Uzair

http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSLJ47151420091119

 

BARCELONA, Nov 19 (Reuters) - Egyptian operator Orascom Telecom's chairman, Naguib Sawiris, said he saw need for consolidation in the Pakistan mobile market but his company was unlikely to participate because it was the market leader.

"I don't think its good for me to increase dominance in Pakistan," Sawiris said on Thursday at an investor conference, adding he also expected to see consolidation in Bangladesh.

Norwegian operator Telenor is the number two operator in Pakistan after Orascom's Mobilink.

Separately on Thursday, Telenor finance director Trond Westlie said it was open for in-market consolidation in Pakistan but declined to comment on rumours it was planning to buy smaller rival Warid Telecom.

Orascom has its biggest operations in Algeria, Pakistan and Egypt but is also active in Bangladesh and Zimbabwe.

Egyptian billionaire Sawiris took a swipe at rivals looking for growth in African or Indian markets. "I hate it when CEOs say their focus is on emerging markets in Africa. "What? How? There is nothing out there, we looked. Why do you think we go to Korea?"

Orascom Telecom Holdings runs a mobile network in North Korea, where Sawiris is betting North and South Korea will eventually reunite. "I went to Korea to invest and when they reunite I will profit. Did anyone ever think the two Germanys would reunite?"

Sawiris, who this week stepped down as Orascom CEO, also said he could not understand why operators would still consider entering the Indian market.

"If a man wants to be suicidal and challenge Reliance, Bharti, Vodafone, be my guest at $1 ARPU (average revenue per user)," Sawiris said, adding it was against his nature to be diplomatic.

Telenor aims to launch Indian operations by December.

[Sheikh Usman N.]

Well ... They had so much debt. Its unwise to think of Mobilink acquiring anyone ....

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Sheikh Usman N.

"First they ignore you, then they laugh at you, then they fight with you, then you win"
-Gandhi

http://sms-wisdom.blogspot.com/

[Muhammad Asif]

Both Warid and Ufone are also highly leveraged I do not know about Telenor and CMPK. 

A share swap deal does not require cash so i think a merger could be an option to cut costs and increase profitability.

I personally feel that Mr. Sawiris will exit Pakistani market provided he gets an attractive offer.

[Haris Shamsi]

Any one who gets an "attractive" offer wants to quit from Pakistani
market - :) no? Except Etsalat which still owe's more that 600 Million
USD to Pakistani Govt on account of PTCL and ufone stakes.

However Nagueeb was very vocal in past 2-3 investors conferences that
he is staying in pakistani Market .

/HS

Sent from my mobile device

[Sheikh Usman N.]

@Asif,

Ufone is not leveraged in that sense. It borrowed 2 billion from its parent company PTCL last year. Another billion was injected as equity in it. So, I do not think Ufone as such will have any bigger problems ...