Millicom sells Paktel to China Mobile

China Mobile has agreed to buy 88.86% of shares in Paktel, Pakistan's fifth largest mobile carrier, the company's listed unit, quoted by an Associated Press report, said.

The Associated Press report said the deal values Paktel at $460 million, according to China Mobile.

It said the deal was subject to regulatory approval but was expected to be completed by late February.

Global telecom investor Millicom International Cellular earlier announced it was considering selling Paktel due to difficult business conditions in Pakistan and frequency interference problems, the Associated Press report said.

The Luxembourg-based company decided to sell Paktel after talks over gaining increased bandwidth from the Pakistan Telecommunications Authority failed to resolve interference problems. Millicom said that as a result, it would sell or close the company, the report added.

Millicom has operated in Pakistan since 1990. As of September 30, Paktel had 1.53 million total subscribers, up 62% from 944,718 the year prior, placing it fifth in terms of active subscribers, the report added.