Pakistan Telecommunication Company Limited (PTCL), a part of the e& Group (e&), has announced the acquisition of 100 percent of Telenor Pakistan, as per a stock filling.
According to the filing, PTCL has signed a Share Purchase Agreement with Telenor Pakistan for the acquisition of a 100% stake in Telenor Pakistan (Pvt) Ltd (Telenor Pakistan).The transaction only concerns the company’s telecom business and does not include Easypaisa in the acquisition.
The transaction values Telenor Pakistan at $495 million on a cash-and-debt-free basis. This includes repayment of intercompany loans of $325 million and reduced interest-bearing liabilities of $167 million, including leases.
PTCL said that acquisition will be financed by external sources, and would mainly be recorded as debt.
The PTCL Group had been engaged in discussions with the Norwegian operator for the acquisition of its Pakistani arm for some time. This possibility was first hinted at by the Telenor Group CEO in 2022, when he indicated the group’s shift in focus from Asia to Europe and the potential divestiture of its Asian assets, including Pakistan,” Sigve Brekke, President and CEO of Telenor Group, stated in November 2022.Subsequently, in January 2023, expressing its interest in making a significant investment in Pakistan’s telecom sector, setting the wheels in motion.
PTCL had then announced that its board of directors had authorized the company to explore investment opportunities in Pakistan’s telecom sector.
The combined operations and customer base of Ufone and Telenor Pakistan will ultimately result in the largest cellular operator in Pakistan, dethroning Jazz, which has enjoyed the leadership position in the cellular market of Pakistan for over a decade and a half.
Hatem Bamatraf, President and Group CEO, PTCL & PTML, 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. 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.
