PTCL acquires 100 stake in Telenor Pakistan through share purchase agreement
ISLAMABAD + Oslo ( Web News )
Pakistan Telecommunication Company Limited (“PTCL”), part of e& Group (e&),today announced that it has signed a Share Purchase Agreement with Telenor Pakistan B.V. (Telenor) to acquire a 100% stake in Telenor Pakistan (Pvt) Ltd (Telenor Pakistan)based on an Enterprise Value of PKR 108 Billion on a cash free, debt free basis.
The acquisition brings together the strengths and expertise of both PTCL Group and Telenor Pakistan, creating synergies that will drive innovation and bolster our market, allowing us 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.
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.Both PTCL and Telenor possess strong and talented teams which would be dedicated towardsdeveloping 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.”
Hassan Nasir Jamy, Chairman PTCL Board, said, “PTCL Group has played a pivotal role in connecting the people of Pakistan. This commitment further solidifies our resolve to build a prosperous and digitally connected nation and to be the national champion to support Pakistan’s digital transformation. This agreement will go a long way in ensuring that we provide our customers with the most efficient and technologically advanced solutions.”
The completion of the acquisition is subject to regulatory approvals and customary closing conditions. PTCL is actively working towards a smooth transition process to ensure minimal disruption for employees, customers, and other stakeholders.
Telenor Group today announces the sale of its Pakistan telco operations to Pakistan Telecommunications Company Ltd (“PTCL”), which is part of technology and investment group e&. PTCL’s major assets include Ufone, a mobile operator in Pakistan with over 20 million customers.
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 of market-leading operators Grameenphone in Bangladesh, CelcomDigi 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 intercompany loans of NOK 3.5 billion and reduced interest-bearing liabilities of NOK 1.8 billion, including leases.
Sigve Brekke, CEO, Telenor Group commented: “Our decision to pursue the sale of our Pakistan operations follows 18 successful years of operations in the country, which started as a greenfield rollout. We are proud of the company Telenor Pakistan is today. It is an efficient and future-ready telco operator, with a strong distribution network and talented team serving 45 million customers. 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.”