PTCL clarifies digital wallet acquisition reports, says target not final

Pakistan Telecommunication Company Limited (PTCL) on Monday clarified that identifying any specific target in connection with its proposed acquisition of a majority stake is “premature”, saying the binding offer remains under negotiation and “no final decision has been reached”.

The clarification came in response to an enquiry from the Pakistan Stock Exchange (PSX) following media reports linking PTCL’s proposed investment to a specific digital wallet.

Last week, the market was rife with speculation that PTCL was eyeing on acquiring a known digital wallet.

The speculation intensified after PTCL informed the bourse on Friday that its Board of Directors had approved the submission of a binding offer to acquire a majority stake in an unnamed target company.

Industry circles believed the target company could be a digital wallet, a move that would mark another major consolidation in Pakistan’s telecom and fintech sectors.

However, PTCL, in its clarification on Monday, stressed that it would be premature to identify or specify the target at this stage.

“The Board of Directors of PTCL authorised the company to explore investment opportunities in the microfinance sector.

“Subsequently, the Board further authorised the submission of a binding offer in connection with the acquisition of a majority shareholding in a target company,” it said.

PTCL noted that while information relating to a bid to acquire a majority stake in the target may be circulating in the public domain, “any inference identifying a specific target is premature and speculative”.

“The binding offer remains under negotiation, and its finalisation is still underway. Accordingly, no final decision has been reached in this regard. Therefore, it would be premature to identify or specify the target at this stage,” it said.

Moreover, reference is made to the company’s earlier communication dated July 21, 2023, whereby the PSX was informed that the Board had authorised the company to explore potential investment opportunities in the microfinance sector in Pakistan.

“That mandate remains valid, and the company continues to evaluate potential opportunities in the ordinary course of business,” it said.

“Should there be any material developments or a final decision in relation to the proposed transaction, PTCL will immediately inform the exchange in accordance with the applicable regulatory requirements.

“Furthermore, the exchange would appreciate that transactions of such nature are subject to competitive bidding and hence any outcome of the same at this stage would not be definitive,” PTCL concluded.