April 16, 2024 (MLN): Pakistan Telecommunication Company Limited (PSX: PTC), in response to the unusual movement in its stock price, has stated that investors have reacted favorably to the disclosed information regarding the Share Purchase Agreement with Telenor Pakistan (Private) Limited (TPL).
According to the PSX database, the average market price of PTCL shares from March 01 to March 13, 2024, stood at Rs12.31 per share, while during the period from March 14 to March 31, 2024, it increased to Rs15.74 per share.
The company had disseminated the price sensitive information on December 14, 2023. Wherein, it was notified that the company has entered into a SPA with the shareholders of TPL for the acquisition of 100% shares of TPL, based on an Enterprise Value of Rs108 billion on a cash free, debt free basis.
"We believe that the investors reacted favorably to the disclosed information, as evidenced by the PSX record," the notice reads.
Following the dissemination of the price-sensitive details, the market price of PTCL shares rose to Rs13.54 per share by the close of March 14, 2024, compared to the previous day's closing price of Rs12.59 per share on March 13, 2024.
Subsequently, the value of PTCL shares continued to rise, reaching Rs18.27 per share by the close of March 29, 2024, the final working day of the month.
It is evident that the upward trend in PTCL's share price was driven by the company's announcement on March 14, 2024, regarding its acquisition of TPL, it said.
Moreover, "we feel that the PSX market is presently showing upward trajectory due to positive economic fronts," the noticed added.
