SINGAPORE-Singapore Telecommunications Ltd. said it invested $118 million in a 45-percent equity stake in Pacific Bangladesh Telecom Ltd. (PBTL), a CDMA carrier in Bangladesh. Of this investment, $90 million will be applied toward the subscription of new shares.
In addition, SingTel has a call option to increase its equity interest in PBTL to 60 percent for an additional $65 million. The option can be exercised between April 1 and June 30, 2007.
Bangladesh has a population of approximately 140 million and around 5.4 million mobile-phone users, representing about a 3.9-percent mobile-penetration rate. Fixed-line penetration is less than 1 percent, SingTel said.
PBTL, a member of the Pacific Group, operates a nationwide CDMA network with about 320,000 customers, representing about 6-percent market share. With SingTel’s investment, the company plans to begin a $100 million expansion program to meet increasing customer demand.
