ISLAMABAD: Singapore Telecommunication (SingTel) is set to jump into Pakistan's telecom market and its talks with Abu Dhabi Group for sale out of more stakes of Waridtel are gearing up as SingTel already owns 30 per cent stake in Warid Telecom.
Well-placed sources told APP on condition of anonymity that the agreement between Singapore Telecommunication Company and Abu Dhabi Group is likely to be signed before June 2009. The decision comes as the company is facing a saturated domestic market while the country comprises only 4.8 million people. Feeling the heat, SingTel has spent 18 billion Singapore dollars to invest in countries such as India, Indonesia, and in the bigger Australian market. Revenue growth in Singapore is expected to slow down to single digit in the year to March 2010. Reportedly, SingTel has expressed its keenness for acquisition after warning that revenue growth in its home market would squeeze due to strong Singapore dollar.
When contacted, a senior official of Warid Telecom said that the deal with SingTel was yet to be confirmed. However, if it goes through, this deal would prove positive for the company as well as Pakistani telecom industry. SingTel earlier posted a 17 per cent drop in quarterly net profit, which is much smaller than expected. However, the company is yet to elaborate its possible targets or markets where it is eyeing acquisitions. -APP
Well-placed sources told APP on condition of anonymity that the agreement between Singapore Telecommunication Company and Abu Dhabi Group is likely to be signed before June 2009. The decision comes as the company is facing a saturated domestic market while the country comprises only 4.8 million people. Feeling the heat, SingTel has spent 18 billion Singapore dollars to invest in countries such as India, Indonesia, and in the bigger Australian market. Revenue growth in Singapore is expected to slow down to single digit in the year to March 2010. Reportedly, SingTel has expressed its keenness for acquisition after warning that revenue growth in its home market would squeeze due to strong Singapore dollar.
When contacted, a senior official of Warid Telecom said that the deal with SingTel was yet to be confirmed. However, if it goes through, this deal would prove positive for the company as well as Pakistani telecom industry. SingTel earlier posted a 17 per cent drop in quarterly net profit, which is much smaller than expected. However, the company is yet to elaborate its possible targets or markets where it is eyeing acquisitions. -APP
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