Dunya Group has failed to seal a deal with the management of WorldCall Telecom, a letter written by Company Secretary Muhammad Azhar Saeed to its stakeholders said. No reason was stated.
According to the details, Dunya Technologies along with Allied Supplies and Services have withdrawn their intention to acquire 56.8 percent ordinary share capital of WorldCall Telecom Limited including 100 percent convertible shares.
Official sources said the reason for failure of the deal were mainly financial, including high share price demanded by WorldCall’s management coupled with huge liabilities on the part of employees’ unpaid salaries for past several months.
Dunya Group’s bidding to acquire the shares was below the expectation of WorldCall. In addition, the Group did not accept WorldCall’s demand to pay out long-pending salaries of nearly 1,000 of its employees.
The issues of salaries is an old one at WorldCall Telecom Limited and it strengthened in severity which went in the last few months as employees in Karachi went on strike to close down services to company’s customers in different areas.
Now in Lahore, employees have gone on strike and suspended all operations including services to customers.
WorldCall appointed financial group Arif Habib Limited as a lead manager for the transactions, which is dealing shares purchase on the behalf of telecom giant, adding that deal can be resumed in future between Dunya Group along with its partner and WorldCall.
This is the second time WorldCall Group has failed to negotiate a share sale-purchase deal with Dunya Group. Previously, it had been in talks with the same group in February 2016 and they concluded without any result.
Meanwhile, the telecom management briefly talked with the management of PTCL in April 2016 to sell out its operations and business but again, no deal emerged after negotiations.
WorldCall Group entered a negotiation with Dunya Group in June 2016 again to buy its major shares but it failed to seal the deal.