Pakistan Telecommunications Company Ltd (“PTCL”), a subsidiary of e&, has acquired the telecom activities of Telenor Group in Pakistan, the latter said today. Ufone, a Pakistani mobile provider serving more than 20 million subscribers, is one of PTCL’s most valuable assets.
As announced during the 2022 Capital Markets Day, the sale is a component of Telenor’s goal to expand its presence and scale in the Asian market. As stated in July 2022, it brings to a close the strategic assessment of the telecom activities in Pakistan.
PTCL Group Buys Telenor for $494 Million
With nearly 160 million subscribers, the other operators in Telenor Asia’s portfolio include Bangladesh’s Grameenphone, Malaysia’s CelcomDigi, and Thailand’s True Corporation.
On a basis devoid of cash and debt, the deal values Telenor Pakistan at NOK 5.3 billion. Repayment of NOK 3.5 billion in intercompany loans and reduction of NOK 1.8 billion in interest-bearing liabilities (including leases) are part of this.
After giving careful thought to all of the options throughout the strategic assessment, we have concluded that a strong local champion will do the market a greater favor after the sale. We want to become the market leader in the Asian countries where we do business. We believe that to create value and grow profitably, scale is essential. We are grateful to the dedicated staff and business associates of Telenor Pakistan, who will keep providing excellent service to our clients throughout the changeover. Looking ahead, our three market-leading companies in Asia will continue to be actively owned by Telenor Asia.
Without changing a thing, Telenor Pakistan will keep serving its 45 million clients. Regulatory clearances and other standard terms and conditions will determine the outcome of the deal. It is anticipated that the deal will close in the year 2024.