Sep 23, 2011

Pakistan Telecommunication Company Limited (PTCL) acquires MAXCOM

In March last year, PTCL acquired Maskatiya Communications (MAXCOM), a broadband internet service provider in the cities of Karachi and Hyderabad and as such having less than 1% market share in Pakistan and a customer based of 6,000 users, through purchase of 100% shareholding of MAXCOM. Subsequent to the acquisition, it was decided by PTCL as well as MAXCOM to merge operation of both the entities in order to offer better and bundled services of voice, date and IPTV to MAXCOM customers on the same basis as are being offered to PTCL’s customer.

This acquisition is being done on revenue sharing basis, from March 2010 to August 2012. The cumulative amount during this period would become consideration for this acquisition. PTCL booked payable of Rs 74.5 million by end of FY10.

Accordingly in 2011, MAXCOM was voluntarily wound up after completing the due legal process and its net assets worth Rs. 68 million were transferred to PTCL books.

Source: Pakistan Today and PTCL Official Website
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