Karachi, December 14, 2023 – The Pakistan Telecommunication Company Limited (PTCL) has formally announced its acquisition of 100 percent shares in Telenor Pakistan Limited (TPL).
The momentous deal, valued at Rs 108 billion on a cash-free, debt-free basis, was unveiled through a communication sent to the Pakistan Stock Exchange (PSX) on Wednesday.
The share purchase agreement (SPA) signed by PTCL with TPL’s shareholders signals a significant development in the telecom sector. The financial transaction required for this acquisition will be facilitated through external debt raised by PTCL, as disclosed in their official statement.
Telenor Pakistan, a prominent mobile operator, boasts a subscriber base of 45 million and reported revenues of Rs 112 billion, with an impressive EBITDA margin of 43 percent in the last twelve months, according to the financial report of September 2023.
The acquisition is viewed as an opportunity for in-market consolidation within the telecom industry, a move that is anticipated to bolster the long-term outlook of the sector. The merging of the two entities is expected to enhance their collective capabilities, resulting in improved service coverage and quality for customers. Additionally, it is anticipated to facilitate broader access to communication solutions for businesses, thereby contributing to the overall economic growth of Pakistan.
Upon completion of the transaction, PTCL Group’s position is set to be fortified, solidifying its standing as a leading operator in mobile, fixed, and microfinancing services, with a combined customer base exceeding 70 million.
PTCL expressed optimism regarding the transaction, anticipating that the amalgamation of infrastructure assets from both entities will unlock significant synergies and value. The company emphasized its commitment to contributing to the digital transformation of Pakistan and positioning itself as a national champion in this pivotal moment in the country’s technological evolution.
The telecom giant sees this acquisition as a strategic move aligning with its overarching goal of building a prosperous and digitally connected nation. PTCL envisions playing a pivotal role in supporting Pakistan’s digital transformation, thereby ensuring the nation’s continued growth and competitiveness on the global stage.
Industry experts are closely watching the developments, expecting regulatory approvals and market adjustments as the telecom landscape adapts to this transformative acquisition. The strategic implications of this deal extend beyond the companies involved, influencing the broader dynamics of the telecommunications sector in Pakistan.