In a significant development within the telecom industry, Pakistan Telecommunication Company Ltd (PTCL) is in talks with the International Finance Corporation (IFC), a subsidiary of the World Bank, to secure a loan of $400 million for a potential acquisition of Telenor Pakistan.
According to a report in The News, citing trustworthy sources, it has been substantiated that PTCL and IFC are currently in the advanced phases of concluding the $400 million loan agreement.
Following a comprehensive due diligence process, PTCL’s Board of Directors authorized the submission of a binding offer to the target company on August 29, 2023. While the official documents did not explicitly mention the company’s name, it was widely known that Telenor Pakistan was planning to divest its holdings and exit the country.
Telenor’s Board of Directors is expected to convene in either November or December 2023 to consider and potentially approve a binding offer. It has come to light that Telenor has already received two offers, one from a Lebanese group and the other from PTCL.
However, several crucial questions must be addressed before proceeding. PTCL has expressed its intent to purchase Telenor Pakistan, a transaction estimated to be in the range of $400 to $500 million. Given that only 26 percent of the shares are held by another shareholder, it implies that the majority of the financial burden will fall upon the Government of Pakistan.
Sources said that the potential deal between PTCL and Telenor Pakistan is still in its preliminary stages, and as such, it has not yet been shared with regulatory bodies such as the Competition Commission of Pakistan (CCP). These procedural requirements will be fulfilled once Telenor’s board provides its approval, which is expected within the next two months.
As per report, the Pakistan Telecommunication Authority (PTA) clarified that Telenor had not formally approached the authority for any potential buyout, nor related documents were submitted. Telenor Pakistan’s spokesperson declined to comment on whether they had received a binding offer and when it would be finalized and termed visit of Telenor Asia Pacific Head as part of his onboarding program.
I m interested for this job
Interest (Sood) bech main aa gya to kya chaly ga PTCL.. Lanat bejo aisi deal py.
Unfortunate for Telenor. PTCL is known for inefficiency and poor services across the country. This deal if materialized will sink Telenor as well.
my name is nasir Masih form Sargodha Pakistan I m really very poor man Please help me lone
In the current dollar-derived Pakistan, I wonder what is the ‘net dollar position’ of Telenor Pakistan (TP) business in Pakistan over the years in terms of its dollar capital investment here, imported equipment & services, and the repatriation of profits. Also, the total tax paid by TP in Pakistan.
Telenor is at the rock bottom anyway, on the other hand the service of PTCL owned ufone is 💯 times better than telenor right now.
correct
my name is Waheed ali form dadu district sindh Pakistan I m really very poor man Please help me I need loan
This is nice job
doesn’t seem likely that a dollar commitment of this size would be offered to a rupee-earning domestic carrier.
Such schemes seems to bail out friendly country Telenor at the cost of future dollar out flow, which will raise Pakistan total debt to trilions with even a rude if one paisa in dollar price.
Great Move by PTCL
Thanks for sharing very helpful information.