PTCL buys Telenor Pakistan for $400m

ISLAMABAD: PTCL has acquired 100pc stakes in Telenor Pakistan for $400 million and announced that there would be no outflow of dollars from the country as a result of this deal.

“The latest deal will consolidate the telecom market as four players were not sustainable if compared with other regional markets. Pakistan’s telecom sector has been lagging because of the structure of the market,” PTCL President Hatem Bamatraf said while addressing a news conference to announce the acquisition of Telenor Pakistan here on Thursday.

Accompanied by PTCL group high-ups, it was announced that the funding of $400 million would be generated through a consortium of IFC and a Chinese firm based on 60 and 40 percent respectively. However, the funding deal has not yet been firmed up but it is hoped that it will be done soon. The PTCL deal does not include procurement of Telenor Microfinance Bank and Telenor shared services.

However, the purchase of Telenor Microfinance Bank (TMB) is also on the cards and PTCL, along with others, has already given a binding offer. But since there is a joint venture of Telenor along with Chinese ANT company, it required approval from both sides.

To another query, the CEO of PTCL group said that no decision was made related to the brand name and this decision would be made after getting procedural approval from different regulators, including CCP, SECP, PTA and SBP. About the participation in 5G technology, the PTCL high-ups say that the government would have to put in place an enabling environment for securing the interest of existing telecom players for 5G technology. Pakistan Telecommunication Company Limited (PTCL) today announced that it has signed a Share Purchase Agreement (SPA) with Telenor Pakistan B.V. (Telenor) to acquire 100pc stake in Telenor Pakistan with the value of Rs108 billion. Hatem Bamatraf, President and Group CEO, of PTCL & PTML, said, “We are confident that the strategic synergies created by combining forces with Telenor Pakistan will result in enhanced value for our customers and stakeholders as they are the ultimate beneficiaries of this transaction. Both PTCL and Telenor possess strong and talented teams which would be dedicated to developing a culture of delivery and teamwork by adopting the best of both companies. The combined entity will serve as a best-in-class provider across all domains with better coverage, seamless data experience, massive reach and a wide range of products and services for customers.”