Initially valuations were being pegged at up to US$1bn, however sources agreed the price would be closer to US$600m – US$700m – the equivalent of around 6 x EBITDA. Standard Chartered and Lazard are advising the sellers and Citi and Goldman Sachs are advising Vimpelcom and Etisalat respectively.

While nothing has been made public, sources said Etisalat was now in advanced talks and ‘had almost clinched it’, having offered a higher amount for the asset. The telco is also said to be favoured given its regional link with the seller – both companies are Abu Dhabi-based.

The Abu Dhabi Group is rumoured to be under some pressure to sell Warid fairly quickly, with the telco’s finances likely to be strained in the upcoming 3G auction in Pakistan, for which the government is aiming to charge around US$330m for each of the three 3G licences on offer. The group has also recently shed Warid Telecom assets to Bharti Airtel in Congo Brazzaville and Uganda.

Should they acquire Warid Pakistan, both Vimpelcom and Etisalat plan to merge the business with their own existing units –Mobilink (Vimpelcom) or PTCL (Etisalat).

Former minority shareholder SingTel will also benefit from the sale. Under the terms of the telco’s 30% stake sale to the Abu Dhabi Group in January 2013, the Singaporean operator will receive a 7.5% share of net proceeds from any future sale, merger or public offering of Warid Telecom.

Contact the editor: ben.nice@tmtfinance.com