Islamabad: Pakistan Telecommunication Company Limited (PTCL) has signed a Share Purchase Agreement (SPA) with TPL, acquiring 100% shares of Telenor Pakistan at an enterprise value of PKR 108 billion.
According to the filings of the Pakistan Stock Exchange, this cash-free deal will be executed on a debt-free basis and PTCL will fund the acquisition through external borrowing.
Media reports suggest that Telenor Pakistan is a leading mobile operator serving 45 million subscribers. As per its last twelve months (LTM) financial reporting until September 2023, it had an income of PKR 112 billion and an EBITDA margin of 43%.
Details reveal that Telenor Pakistan’s major assets include Ufone, another mobile operator in Pakistan with over 20 million subscribers.
The financial commitment for the acquisition of Telenor Pakistan is NOK 5.3 billion, secured through cash and debt on a debt-free basis. This includes NOK 3.5 billion in intercompany repayments and NOK 1.8 billion in interest-bearing liabilities.
Commenting on the acquisition, Sigve Brekke, CEO of Telenor Group, stated, “Our decision to pursue the sale of our Pakistan operations follows 18 successful years of operations in the country, which started as a greenfield rollout. We are proud of the company Telenor Pakistan is today. It is an efficient and future-ready telco operator, with a strong distribution network and talented team serving 45 million customers.”
He further added, “By selling to the country’s largest integrated ICT company, we believe this consolidation move would help strengthen Pakistan’s telecoms sector, creating opportunities in new areas of growth to the benefit of consumers in Pakistan.”
Petter-Børre Furberg, the head of Telenor Asia, commented, “We systematically considered all alternatives during the strategic review process and believe that, following a sale, the market will be better served by a strong local champion”.
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