WorldCall has received a loan of $35 million from a local bank against corporate guarantee provided by the parent company – Oman Telecommunication (Omantel) – in order to meet capital expenditure and restructure debt.
The popular TV cable provider had requested the parent company for an injection of $70 million in November 2010. Omantel acquired a 56.8 per cent stake in WorldCall for $193 million in 2008 as part of its international expansion strategy.
Worldcall losses more than tripled to Rs1.51 billion in 2010, compared with a loss of Rs490 million in the preceding year.
Askari Bank has provided the loan for seven years, with a two-year grace period, according to a notice sent to the Karachi Stock Exchange on Thursday.
The company operates in three segments – cable TV, broadband and calling services. Around 80 per cent of the total revenues are generated from the voice segment while the other two segments contribute 20 per cent.
Published in The Express Tribune, March 18th, 2011.