The focus-attracting transaction of China Mobile's acquisition of Paktel, a Millicom's controlled company in Pakistan, has been finally materialized. On February 14, 2007, China Mobile Communications Corporation announced that the parent company has successfully acquired all the shares hold by Millicom. It is said that the transfer process has been completed in Islamabad and the new Board of Directors appointed Liu Aili, Vice President of China Mobile, to be the new Chairman. This deal marked the first step of China Mobile's global expansion and the formal entry into the Pakistani telecom market. The Chinese Embassy in Islamabad held a ceremony of congratulation on February 13 which Mr. Awais Ahmad Khan Leghari, the Federal Minister for Information Technology and other high-level Pakistani officials were attended.
Mr. Zhang Chunxiang, the Chinese Ambassador to Pakistan, said at the ceremony that this transaction represents another milestone in the history of Chinese corporate investment in Pakistan. China Mobile's investment in the local telecom infrastructure following this transaction will add momentum to the Pakistani telecom industry and generate job opportunities for the Pakistani people. China Mobile's presence in Pakistan will serve the mutual interests of the two sides and contribute to the longstanding friendship and strategic partnership between China and Pakistan.
Mr. Wang Jianzhou, President of China Mobile, said: "We've paid a good deal of attention to the Pakistani telecom market for a long time. We believe that we can create more values for both Pakistani consumers and China Mobile itself." Mr. Wang said the completion of this transaction is not the finishing line but a crystal new starting point for future development. China Mobile has appointed an experienced management team to make out and exercise a long-term strategy for Paktel's future development. We are confident that this acquisition will surely achieve win-win cooperation, and deepen the friendship between China and Pakistan.
China Mobile Communications Corporation entered into an agreement with Millicom International Cellular S.A. on January 22 to purchase 88.86% of the outstanding shares of Paktel Limited. The transaction implies an enterprise valuation for Paktel Limited of US$460 million.
China Mobile Communications Corporation is entirely owned by the Chinese Government. Its subsidiary company, China Mobile Limited, is a leading mobile operator with the largest customer base and network capacity in China, and also it is the most valuable telecom company in the world, which is listed in the Hong Kong and New York Stock Exchange.