PTCL to acquire Telenor Pakistan’s operations

ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL), on Thursday, signed a share purchase agreement with Telenor to acquire a 100 percent stake of Telenor Pakistan (Pvt) Ltd based on an enterprise value of Rs108 billion on a cash-free, debt-free basis.

This was announced by Hatem Bamatraf, president and Group CEO PTCL and PTML flanked by Group Chief Financial Officer Nadeem Khan, Group Chief Regulatory Officer Naveed Khalid Butt and Group Chief Marketing Officer Syed Atif Raza while addressing a media briefing, here on Thursday.

The completion of the acquisition is subject to regulatory approvals and customary closing conditions. The PTCL is actively working towards a smooth transition process to ensure minimal disruption for employees, customers, and other stakeholders, the PTCL official announced.

Telenor Group also announced the sale of its Pakistan telco operations to PTCL, which is part of technology and investment group e&. The PTCL’s major assets include Ufone, a mobile operator in Pakistan with over 20 million customers.

The move is anticipated to result in improved coverage and service quality for consumers, fostering wider access to communication solutions for businesses and supporting Pakistan’s economic growth.

Bamatraf said the acquisition brings together the strengths and expertise of both PTCL Group and Telenor Pakistan, creating synergies that will drive innovation and bolster market, allowing them to reach a broader customer base and accelerate digital transformation journey. The milestone will add to PTCL’s strategic growth and market expansion, solidifying its position as a key player. Our combined strength will revolutionize the telecom industry in Pakistan, he added.

Bamatraf, said, “We are confident that the strategic synergies created by combining forces with Telenor Pakistan will result in enhanced value for our customers and stakeholders as they are the ultimate beneficiaries of this transaction. Both PTCL and Telenor possess strong and talented teams which would be dedicated towards developing a culture of delivery and teamwork by adopting the best of both companies. The combined entity will serve as a best-in-class provider across all domains with better coverage, seamless data experience, massive reach and a wide range of products and services for customers.”

Hatem Dowidar, Group CEO of e&, said, “The strategic acquisition of Telenor Pakistan presents a significant opportunity for market consolidation, empowering us to invest more in creating the best next-generation network in Pakistan. This move reinforces our commitment to the progress of the country’s telecom sector, delivering added value to our customers and shareholders. In shaping a telecom legacy where innovation and connectivity merge to explore future opportunities, we aim to accelerate digital transformation to better serve our customers and community.”

The sale is part of Telenor’s strategy to build scale and market-leading players in Asia, as presented at the 2022 Capital Markets Day. It concludes the strategic review of the telco operations in Pakistan, which was announced in July 2022.

The remaining Telenor Asia portfolio comprises market-leading operators Grameen phone in Bangladesh, Celcom Digi in Malaysia and True Corporation in Thailand, with close to 160 million customers. The transaction values Telenor Pakistan at NOK 5.3 billion on a cash-and-debt-free basis. This includes repayment of inter company loans of NOK 3.5 billion and reduced interest-bearing liabilities of NOK 1.8 billion, including leases.

Copyright Business Recorder, 2023