Wed. Oct 16th, 2024
PTCL to acquire 100 of TelenorPakistanPTCL to acquire 100 of TelenorPakistan

PTCL : Enters into share-purchase agreement with Telenor Pakistan shareholders for acquisition of 100% shares based on enterprise value of Rs108bn on cash-free, debt-free basis

Pakistan Telecommunication Company Limited (PTCL) has finalized a Share Purchase Agreement (SPA) with the shareholders of Telenor Pakistan (Private) Limited (TPL) for the complete acquisition of Telenor Pakistan’s shares for Rs108 billion ($385 million).

This move puts an end to the speculation regarding Telenor Pakistan’s future in the country, which had been a topic of discussion over the past year.

According to the notice shared with the Pakistan Stock Exchange, the acquisition is based on an Enterprise Value of Rs108 billion on a cash-free, debt-free basis.

The transaction will be funded through external debt raised by PTCL. As a result of this deal, PTCL’s share price surged, hitting the upper limit, with over 1.76 million shares traded.

Telenor Pakistan, a mobile operator serving nearly 45 million subscribers with reported revenue of Rs112 billion, will continue its operations as usual.

PTCL’s major assets include Ufone, a mobile operator with over 20 million customers, operated by Etisalat under an agreement with the government of Pakistan.

The consolidation is seen as an opportunity for in-market consolidation in the telecom sector, leading to an improved long-term outlook.

PTCL anticipates that combining the capabilities of both entities will enhance coverage and service quality, providing broader access to communication solutions for businesses and supporting the economic growth of Pakistan.

The transaction is expected to strengthen PTCL Group’s position as a leading operator in mobile, fixed, and micro-financing, serving more than 70 million customers upon completion.

Telenor Group values Telenor Pakistan at NOK 5.3 billion on a cash-and-debt-free basis, emphasizing the strategic decision to sell its Pakistan operations after 18 successful years.

Sigve Brekke, CEO of Telenor Group, expressed confidence that the sale to Pakistan’s largest integrated ICT company would strengthen the telecom sector, creating new growth opportunities.

The agreement is subject to regulatory approvals and other customary terms and conditions, with the completion of the transaction anticipated in 2024.

Fast-moving consumer goods: FBR issues SRO

By Zarish

Leave a Reply

Your email address will not be published. Required fields are marked *