KARACHI: Pakistan Telecommunication Company Limited (PTCL) has acquired 100 percent shares of Telenor Pakistan.
According to an official announcement through a Stock Market website, the Board of Directors of PTCL authorized the company to offer a binding offer to Telenor Pakistan. It has entered into a Share Purchase agreement with shareholders of Telenor Pakistan (Pvt) Limited for the acquisition of 100 per cent shares based on its value of Rs 108 billion.
“The transactions will be financed by external debt that will be raised by the company,” the PTCL announcement said.
Telenor Pakistan is a strong mobile operator serving 45 million subscribers with reported revenue of Rs 112 billion per annum.
PTCL Group had been in talks with the Norwegian operator for the acquisition of its Pakistani arm for quite some time and after deliberations and certain regulatory approvals, the announcement is finally made today.
The transaction provides an opportunity for in-market consolidation in the telecom market which will predominantly lead to an improved long-term outlook of the telecom sector, the announcement said.
It further said that the transaction will also improve the capabilities of the combined entities and result in improved coverage and quality of services to customers and enable wider access to communication solutions for businesses while supporting economic growth of Pakistan.
It will further strengthen the position of PTCL group as a leading operator in mobile, fixed and micro-financing serving more than 70 million customers, upon completion of the transaction.
The above transaction is subject to all corporate/regulatory approvals, competition of formalities and signing of necessary agreements.