PTCL Reportedly Acquires 100 Percent of Telenor Pakistan in Landmark Deal
Pakistan Telecommunication Company Limited (PTCL), a subsidiary of the e& Group (e&), has declared the acquisition of 100 percent ownership of Telenor Pakistan, as stated in a stock filing.
According to the filing, PTCL has entered into a Share Purchase Agreement with Telenor Pakistan for the complete acquisition of Telenor Pakistan (Pvt) Ltd (Telenor Pakistan).
This acquisition, with an Enterprise Value of Rs. 108 Billion, is a cash-free, debt-free transaction.
The transaction assesses Telenor Pakistan at $495 million on a cash-and-debt-free basis. This includes the repayment of intercompany loans amounting to $325 million and reduced interest-bearing liabilities of $167 million, including leases.
Previously: Ptcl interested to buy Telenor.
PTCL has specified that the financing of the acquisition will come from external sources, primarily recorded as debt.
Discussions between the PTCL Group and the Norwegian operator regarding the acquisition of Telenor’s Pakistani arm had been ongoing. The possibility was initially hinted at by Telenor Group CEO in 2022, indicating the group’s shift in focus from Asia to Europe and the potential divestiture of its Asian assets, including Pakistan.
In November 2022, Sigve Brekke, President and CEO of Telenor Group, stated, “We are looking for ‘merger opportunities’ in Pakistan.” Subsequently, in January 2023, PTCL expressed its interest in making a significant investment in Pakistan’s telecom sector through a stock filing, setting the process in motion.
The combined operations and customer base of Ufone and Telenor Pakistan are expected to result in the largest cellular operator in Pakistan, surpassing Jazz, which has held the leadership position in the cellular market for over a decade and a half.
Hatem Bamatraf, President and Group CEO of PTCL & PTML, expressed confidence that the strategic synergies with Telenor Pakistan would enhance value for customers and stakeholders. The combined entity aims to provide better coverage, a seamless data experience, massive reach, and a wide range of products and services.
Hatem Dowidar, Group CEO of e&, highlighted the strategic acquisition’s opportunity for market consolidation, emphasizing the commitment to progress in the country’s telecom sector and digital transformation.
The completion of the acquisition is subject to regulatory approvals and customary closing conditions, with PTCL actively working to ensure a smooth transition process with minimal disruption for employees, customers, and stakeholders.