In a strategic move that is set to reshape the telecommunications landscape in Pakistan, Pakistan Telecommunication Company Limited (PTCL) is gearing up to acquire Telenor’s Pakistan operations. The announcement, made on Thursday, marks a significant development in the industry, as PTCL aims to secure a 100% stake in Telenor Pakistan on a cash-free, debt-free basis.
Telenor Group, in a press release, confirmed the sale of its Pakistan telco operations to PTCL, a major player in the technology and investment sector under the umbrella of e&. PTCL’s portfolio includes Ufone, a mobile operator boasting an impressive 25 million customers in Pakistan.
The decision to sell comes as part of Telenor’s broader strategy outlined during the 2022 Capital Markets Day, focusing on building scale and market-leading positions in Asia. The sale concludes the strategic review initiated in July 2022, valuing Telenor Pakistan at NOK 5.3 billion on a cash-and-debt-free basis.
According to Sigve Brekke, CEO of Telenor Group, the move to sell their Pakistan operations comes after 18 successful years in the country, emphasizing the efficiency and future-ready status of Telenor Pakistan. Brekke stated, “By selling to the country’s largest integrated ICT company, we believe this consolidation move would help strengthen Pakistan’s telecoms sector, creating opportunities in new areas of growth to the benefit of consumers in Pakistan.”
Petter-Børre Furberg, Head of Telenor Asia, echoed this sentiment, noting that the strategic review considered all alternatives and concluded that the market would be better served by a strong local champion. The goal for Telenor in Asia is to establish number-one positions in the markets they operate, emphasizing scale as a prerequisite for value creation and profitable growth.
The transaction involves a valuation of NOK 5.3 billion, encompassing the repayment of intercompany loans and reduced interest-bearing liabilities, including leases. With this acquisition, PTCL is poised to become a formidable force in the Pakistani telecom sector, providing enhanced services and contributing to the growth and development of the industry.
As the telecommunications landscape undergoes a transformation with this strategic acquisition, consumers and industry stakeholders can look forward to a more robust and competitive telecom market in Pakistan, driven by the synergies and strengths of PTCL and Telenor Pakistan. The transition is expected to unfold seamlessly, with both companies committed to ensuring continuity and high-quality service for their customers during this transformative period.
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