TRG Pakistan signs 5-year service agreement with US telecom provider

TRG Pakistan Limited on Thursday announced that one of its portfolio companies in the enterprise software industry has signed a pay-for-performance, five-year service agreement with a US telecommunications provider, informed the company in a notice to the Pakistan Stock Exchange.

“It is currently unclear how much the portfolio company will be able to actually bill and collect under this agreement, as such a determination will depend on a number of factors. These factors are primarily driven by whether the services provided will sufficiently perform to earn all potential fees, and also by whether the client triggers a termination for convenience right as well as to what extent are potential service fees impacted by the telecommunication provider’s customer churn,” the notice further said. 

 Subject to these conditions, the potential service fees are expected to be highly material to the current aggregate revenues of the portfolio company, the notice added. 

“TRG Pakistan Limited would also like to announce that it is actively assessing monetization alternatives for two of its other portfolio companies and these portfolio companies have retained financial advisors for that purpose. These alternatives include accessing the US public markets. Given the volatility in the financial markets as well as the outlook for the global economy, there is no certainty as to the potential success of any such initiative,” the notice elaborated.