2

Warid Telecom Chairman’s Leaked Letter to President Huawei

In response to the legal notice from Huawei to recover outstanding payments, H.E. Sheikh Nahyan Mubarak Al Nahyan, Chairman of Dhabi Group and Warid Telecom wrote a letter to Mr. Ding Shao Hua, President of Huawei on June 12, 2010. But Huawei filed a petition in the Lahore High Court, Rawalpindi Bench with the subject; “Winding up Warid Telecom Ltd” and started media war to further.

Here is the leaked letter, being widely circulated on the internet, in full.

Huawei’s Pakistan Office refused to comment on it..

You can read about the updated status of Warid Huawei Settlement here.

________________________________________

MENA 12th June 2010

DING SHAO HUA,

President of Huawei,

Dear Mr. Hua,

Re: WARID PAKISTAN

I refer to your Letter dated 7th May 2010 in connection with the outstandings due to Huawei from Warid Pakistan (“Warid”).

I have now had the chance to look into the matter.

At the outset, I would like to express my deep appreciation and gratitude for the support that Huawei has extended to Warid by supplying equipment and providing services and participating the growth of Warid. As you may be aware, Warid made rapid progress and became an established player in the Pakistan market but more recently Warid, as with other operators, has encountered serious operational and commercial challenges.

It is questionable whether the Pakistan market can sustain 5 Operators and the timing is ripe for an industry consolidation. In addition to the operational challenges, in order to fund its rapid expansion, Warid has to borrow from the International and Domestic markets in excess of $800 Mil. to date.


Advertisements

In light of the above, the Board of Warid has constituted 2 Committees ( the M&A Committee & Restructuring Committee) to analyse the strategic options open to Warid both in terms of Industry consolidation and the restructuring of its debt and to make appropriate recommendations to the Warid Board. External Advisors including Goldman Sachs, KPMG & Allen Overy are assisting these Committees.

I have asked the Restructuring Committee to contact you and to meet you so that they can update you on its deliberations with Warid’s Lenders and to explain to you the current status of the Huawei/CDB transaction. As you will appreciate, given the paripassu collateral structure being sought by CDB, any drawndown under the CDB financing would be conditional on getting the consent of Warid’s existing Lenders and it is necessary therefore that a way be found to quickly resolve this in a manner which is acceptable to all Parties.

Meanwhile, I was shocked to learn that Warid has been served a legal notice from Huawei demanding immediate repayment. Such action on Huawei’s part is value destroying and will only serve to undermine the work of the Restructuring & M&A Committees.

I would ask that you personally intervene to ensure that no precipitous steps are taken which could jeopardize Warid’s operational viability and hope that the Restructuring Committee can constructively engage with Huawei/CDB to resolve this matter.

With my best personal regards,

Nahyan Mubarak Al Nahyan

Chairman

SCANNED COPY

Follow us on twitter2Twitter and join our facebook2Facebook Fan Page or rss2Subscribe to Our RSS Feed

Related Posts

Enjoyed this article? Submit your email to receive daily news and updates.

***You must click confirmation link sent in email. If you don't see the email, check spam folder.


Filed in: Warid Telecom Tags: , , ,

2 Responses to "Warid Telecom Chairman’s Leaked Letter to President Huawei"

  1. Manzoor says:

    That’s quite normal in Corporate world. Happy that they resolved the issue.

  2. Ishfaq says:

    I heard that the purpose of the petition was to ruin the reputation of Warid and it’s chairman…

Leave a Reply

Submit Comment

© 5031 Tech Readers. Reproduction without explicit permission is prohibited. All Rights Reserved. XHTML / CSS Valid.