PTCL finalizes deal to acquire 100% stake in Telenor Pakistan for Rs108bn

December 14, 2023 (MLN): Pakistan Telecommunication Company Limited (PSX: PTC) has entered into a Share Purchase Agreement (SPA) with the shareholders of Telenor Pakistan (Private) Limited (TPL) for the acquisition of 100% of TPL's shares, based on an Enterprise Value of Rs108 billion, PTCL’s filing on local bourse revealed today.

The deal will be executed on a cash-free, debt-free basis and PTCL will finance the acquisition through external debt that will be raised by the company.

Telenor Pakistan is a strong mobile operator serving 45 million subscribers with reported revenue of Rs112bn and EBITDA margin of 43% based on the last twelve months (LTM) September 2023 financial reporting.

The Transaction provides an opportunity for in-market consolidation in the telecom market which will predominantly lead to an improved long-term outlook of the telecom sector.

Moreover, it will also improve the capabilities of the combined entities and result in improved coverage and quality of services to customers, and enable wider access to communication solutions for businesses while supporting the economic growth of Pakistan.

It will further strengthen the position of PTCL Group as a leading operator in Mobile, fixed and microfinancing serving more than 70m customers, upon completion of the transaction.

PTCL expects that the combined infrastructure assets of both entities shall unlock value in synergies.

The company’s efforts to build a prosperous and digitally connected nation and position PTCL as the national champion to support Pakistan's digital transformation.

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