The telecom industry has undergone considerable consolidation with the signing of a Share Purchase Agreement (SPA) by Pakistan Telecommunication Company Limited (PTCL) and the shareholders of Telenor Pakistan (Private) Limited (TPL) for the purchase of 100% of TPL’s shares for Rs 108 billion ($385 million).
Telenor Last year, Pakistan’s future in the nation was a hot topic of discussion; however, PTCL allayed concerns about it on Thursday by disclosing the details in its notice to the Pakistan Stock Exchange.
About our letter dated August 29, 2023, in which the Board of Directors of PTCL allowed the company to make a legally enforceable offer to the target business.
Given the above, the company has signed a Share Purchase Agreement (SPA) with TPL’s shareholders for the debt-free, cash-free acquisition of all of TPL’s shares, with an enterprise value of Rs. 108 billion, subject to Board approval.
It was revealed that the business will find additional funding to cover the acquisition costs.
With over 1.76 million shares exchanged on Thursday, PTC’s share price had already reached its peak. At the time this article was written, it cost Rs13.01.
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Over 45 million Pakistanis use Telenor Pakistan. In September 2023, the company reported Rs 112 billion in LTM sales.
PTCL owns Ufone, a mobile operator with over 20 million Pakistani customers. The Pakistani government, which owns the majority stake, and Etisalat, a large minority stakeholder, have a contract to operate it.
PTCL says, “This transaction makes it possible for in-market consolidation in the telecom market, which will primarily improve the telecom sector’s long-term outlook.”
The notification said the merger would strengthen the combined businesses’ capabilities, consumer coverage, service quality, and communication solutions, benefiting Pakistan’s economy.
After the merger, PTCL declared, “PTCL Group will be even better positioned to serve over 70 million customers as a leading provider of mobile, fixed, and microfinance services.”
The two companies could gain from infrastructure sharing. It said, “PTCL aims to establish PTCL as the national champion to support Pakistan’s digital transformation and build a prosperous and digitally connected nation.”
The declaration from Telenor
Telenor Pakistan’s cash-positive, debt-free sale value was NOK 5.3 billion in another Telenor Group announcement.
She says, “This includes reduced interest-bearing liabilities of NOK 1.8 billion, including leases, and repayment of intercompany loans of NOK 3.5 billion.”
say, “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.”
Selling to the largest integrated ICT company will enhance Pakistan’s telecom sector and give consumers more development options.
Petter-Børre Furberg, CEO of Telenor Asia, thinks that a strong local champion will best serve the market after the sale.
Telenor Pakistan and its partners provided excellent transition support. Three Asian titans are part of Telenor Asia.
In Pakistan, Telenor promised 45 million customers.
“This agreement needs regulator clearance and standard terms. The arrangement ends in 2024.
PTCL informed the stock exchange in August that its Board of Directors had approved Pakistani telecom investments.
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