ISLAMABAD: Pakistan Telecommunication Company Limited has shown its interest in making a sizable investment in the country’s telecom sector, the company informed the Pakistan Stock Exchange on Tuesday.
PTCL stated that in continuation of its earlier letter dated January 31, 2023, the Board of Directors of PTCL has authorised the Company to explore potential investment opportunity(ies) in the telecom sector in Pakistan.
“After a due-diligence process, [the] Board of Directors on August 29th, 2023 has authorised the Company to offer a binding offer to the target Company. This opportunity is subject to certain conditions, including inter alia acceptance of the offer, finalization and execution of definitive documents as well as receipt of all regulatory consents and approvals,” it added.
The PTCL is reportedly looking to merge Telenor with Ufone, the cellular arm of the PTCL group.
Telenor Group has stated that it is observing the deterioration of Pakistan’s political and economic situation, which may increase the risk of civil unrest, security concerns and financial instability.
Telenor Group in its “Second quarter and half year – 2023, interim report” stated that Pakistan remains a tough market with high inflation. In Asia, inflationary pressures, and the challenging macro environment, particularly in Pakistan, continue to impact the Group’s operations as well as customers.
Management is also observing high inflation in all markets, particularly in Pakistan. The macro-economic outlook for Pakistan remains challenging and the entity is still sensitive for impairment. These risks require continuous monitoring and are being closely followed up at both local and Group level. The macro-economic outlook for Pakistan remains challenging and the entity is still sensitive to impairment, said the quarterly earnings report.
Management’s focus for Telenor Pakistan remains to manoeuvre in the very challenging business and macroeconomic environment by prioritising higher ARPU customers, balancing network quality and further adapting the organisation.
Service revenues increased by four percent due to improved data monetisation more than offsetting the impact from a lower subscription base, it added.
Copyright Business Recorder, 2023