Reports in foreign media state Norwegian telecom group Telenor plans to sell shares of its subsidiary in Pakistan and the group is talking with its Chinese counterpart China Mobile about this transaction.
Though both of the companies involved denied the rumor, media reports state a confidential negotiation is undergoing at the group level between the two parties. Although Telenor has about 20 million users in Pakistan, it is considering selling shares of the Pakistani subsidiary, due to security issues. Telenor has reportedly transferred its focus to India and the group recently acquired about 67% stake in the India-based Unitech Wireless.
With the Zong brand in Pakistan as its first overseas investment project, China Mobile has over six million users in the country. Before its negotiation with Telenor, the company offered to acquire Warid Telecom in Pakistan, but the two sides did not reach any agreement because of reported price disagreements.
At present, there are five mobile phone operators in Pakistan, including Mobilink, Telenor, Ufone, Warid, and China Mobile's Zong, sharing the 90 million mobile phone users in the country.