Telenor to decide on Pakistan exit by year-end

October 26, 2023 (MLN): Telenor ASA, the Norwegian telecommunications giant, is expected to make a decision on divestment of its operations in Pakistan by year-end, as Bloomberg reported.

CEO Sigve Brekke in an interview in Oslo stated that “we are in contact with various parties — that is a part of the strategic review we are doing now — and we have several options on the table.” 

“Before the end of this year, we will have made the decision,” he added.

Telenor is overhauling its operations to free up capital and reduce risk, merging its Thai unit with True Corp Pcl and its Malaysian unit with Axiata’s Celcom Networks Bhd.

Last year, it also struck a deal with a consortium led by KKR & Co. for the sale of a minority stake in its Norwegian fiber network.

It started seeking bids for the Pakistan business last year after posting a 2.5 billion-krone ($220 million) impairment on its unit in the country, Bloomberg reported.

Pakistan Telecommunication said in August that it had submitted an offer for a target company, without saying who the bid was for.

The Norwegian company would also keep its options open for possible consolidation alternatives in the Nordic region, the CEO said on Wednesday, but will watch how the European Union rules on corporate deals in Spain to see if they are more conducive to mergers in the telecommunications industry.

Back in 2015, Telenor and TeliaSonera AB scrapped the merger of their Danish businesses after they were not able to agree with the EU on conditions for the transaction.

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