The love affair of WorldCall Telecom Limited (WTL) and ARY Group has ended on a bad note without any substantial progress on the business deal.
According to a notification issued to PSX by AKD Securities Limited, the manager of the offer, the interested acquirer— ARY Communications Limited and ARY Digital FZ LLC—has decided not to proceed with the deal of acquiring a 51 percent stake in WorldCall Telecom Limited.
To recall, in May 2021, WTL had received a public announcement of intention (PAI) from ARY Communications Limited and ARY Digital FZ LLC, according to which more than 51 percent of the issued and paid-up share capital of WTL together with management control was to be acquired, as stated in an old notification submitted to PSX.
The acquisition process was already stalled since February 2021, when ARY announced to acquire the shares with the intent to take over 100 percent shares of WTL.
Later in November 2021, both parties received an extended time period to negotiate the price in order to conclude a successful deal. However, the acquiring group categorically regretted continuing the deal with the target company in its latest announcement.
During the period, WorldCall Telecom Limited witnessed aggressive trading activity in its shares which touched the upper lock many times with huge interest from equity traders. WTL has set a record of entering into a maximum number of unsuccessful deals. In the past, the group also entered into negotiation with PTCL, Dunya Group, and Elko Broadband, a US-based company.
WTL’s scrip at the bourse was closed at Rs. 2.05, down by Rs. 0.10 or 4.75%, with a turnover of 33.53 million shares on Monday.
ARY Communications Limited is the licensee of the Pakistan Electronic Media Regulatory Authority (PEMRA). It has obtained various licenses (Satellite TV & Landing Rights) from PEMRA and operates seven channels in Pakistan. It is also engaged in the business of audio text, voice mail, and other value-added services in Pakistan.
ARY Digital FZ LLC has been incorporated into Dubai Media City as a Free Zone Establishment with Limited Liability. It is engaged in the business of Broadcast and Production Support Services of Films, TV & Radio.
Source: Pro Pakistani