Telecom giant says binding offer remains under negotiation and no specific microfinance company has been finalised.
KARACHI: Pakistan Telecommunication Company Limited (PTCL) has confirmed that it is exploring investment opportunities in Pakistan’s microfinance sector but said no final decision has been made to acquire any specific company.
In a clarification issued to the Pakistan Stock Exchange (PSX), PTCL said its Board of Directors had previously authorised the company to explore investment opportunities in the microfinance sector. The board subsequently approved the submission of a binding offer to acquire a majority shareholding in a target company.
However, PTCL said reports circulating in the public domain identifying a particular target were premature and speculative.
The company said negotiations over the binding offer were still under way and had not yet been finalised. It therefore considered it premature to identify or name the potential target.
PTCL referred to its earlier communication to the PSX dated July 21, 2023, in which it disclosed that its board had authorised the exploration of potential investment opportunities in Pakistan’s microfinance sector.
The company said that mandate remains valid and it continues to assess potential opportunities in the ordinary course of business.
Proposed transaction subject to approvals
PTCL said any decision to proceed with a potential acquisition would depend on the successful conclusion of negotiations, completion of due diligence and execution of definitive transaction documents.
The transaction would also require all applicable corporate, regulatory and statutory approvals before completion.
The company said it would notify the PSX promptly of any material development or final decision concerning the proposed investment in accordance with applicable regulatory requirements.
PTCL also cautioned that transactions of this nature are subject to competitive bidding. Therefore, any outcome at the current stage should not be regarded as definitive.
PTCL clarifies microfinance acquisition reports
The clarification followed a request from the PSX for information regarding reports of PTCL’s potential investment in the microfinance sector.
PTCL’s response confirms that the company remains interested in expanding into microfinance but has not finalised an acquisition of any particular institution.
The company’s latest disclosure indicates that the potential investment remains at a preliminary stage, with negotiations, due diligence and regulatory approvals still required before any transaction can be completed.