PTCL’s Strategic Move: Acquires Telenor Pakistan for Rs108 Billion

PTCL's Strategic Move: Acquires Telenor Pakistan for Rs108 Billion

Sabiha Rajpoot | December 15, 2023 | 11:13 PM IST | Pakistan News | Follow on Google News

PTCL’s Strategic Move: Acquires Telenor Pakistan for Rs108 Billion.image/Dwan

PTCL’s Strategic Move: Acquires Telenor Pakistan for Rs108 Billion

In a significant development for the Pakistani telecom industry, the Pakistan Telecommunication Company Limited (PTCL) has entered into a Share Purchase Agreement (SPA) to acquire 100% of Telenor Pakistan’s shares. The deal, valued at Rs108 billion, is structured on a cash-free, debt-free basis, and PTCL plans to fund the acquisition through external debt.

In-Market Consolidation: Shaping the Future of TelecomThe acquisition is poised to bring about in-market consolidation in the telecom sector, positively impacting the industry’s long-term outlook. PTCL’s existing assets, including Ufone, will further strengthen its position in the market. With over 20 million customers, Ufone is a significant player in Pakistan’s mobile operator landscape.

Telenor Group’s Strategic Shift and Future Focus in AsiaTelenor Group, in a press release, highlighted that the sale of Telenor Pakistan aligns with its strategy to build scale and market-leading players in Asia. The move follows a strategic review of the telecom operations in Pakistan, announced in July 2022.

Telenor Group’s remaining portfolio in Asia includes market-leading operators in Bangladesh, Malaysia, and Thailand, collectively serving close to 160 million customers.This transaction values Telenor Pakistan at NOK 5.3 billion on a cash-and-debt-free basis.

Telenor Group’s CEO, Sigve Brekke, expressed pride in Telenor Pakistan’s evolution over 18 successful years and emphasized the efficiency and future-ready nature of the telco operator.

The sale to PTCL is seen as a move that will not only benefit Telenor Group but also contribute to strengthening Pakistan’s telecom sector.

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Sabiha Rajpoot

Sabiha Rajpoot, a young journalist, having BA- Journalism degree, writes on different scenarios. Sabiha is also a doctor degree at DHMS.