Telenor to exit Pakistan | PTCL is ready to buy Telenor Pakistan | Telenor Sell Telenor Pakistan to PTCL to Complete its Strategic Assessment in Pakistan.

 

PTCL Buying Telenor In Pakistan link

Singapore, Islamabad, December 14, 2023: The Telenor Group has announced today that is selling its telecom business in Pakistan.

Telecommunications Company Ltd. ("PTCL") is a member of the e& investment and technology group. Among PTCL's principal holdings is Ufone, a 25 million-customer mobile provider in Pakistan.

As stated at the 2022 Capital Markets Day, the transaction is a component of Telenor's plan to establish market leadership and scale in Asia. This brings an end to the July 2022 announcement of the strategic review of telecom activities in Pakistan.

The whole Telenor Asia portfolio, which comprises market leaders Grameenphone in Bangladesh, CelcomDigi in Malaysia, and True Corporation in Thailand, has over 160 million customers.

In cash and debt-free terms, the transaction values Telenor Pakistan at NOK 5.3 billion. This includes reducing interest-bearing obligations of NOK 1.8 billion, including leases, and repaying intercompany loans totaling NOK 3.5 billion.

"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," said Telenor Group CEO Sigve Brekke. We take great pride in Telenor Pakistan as a corporation today. Serving 45 million consumers, it is a capable and forward-thinking telecom operator with a robust distribution network and a skilled workforce. We think that by selling to the biggest integrated ICT business in the nation, this consolidation step would support the expansion of Pakistan's telecom industry and open up new growth potential for Pakistani customers.

"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," stated Petter-Børre Furberg, Head of Telenor Asia. As the scale is a requirement for value creation and profitable growth, our objective in Asia is to establish leadership positions in the markets we serve. We salute and appreciate the dedication of the Telenor Pakistan team and its partners, who will keep providing excellent customer service throughout the transition. In the future, Telenor Asia intends to maintain its ownership stake in the three dominant companies within our Asian portfolio.

Telenor Pakistan will carry on with its operations as usual, concentrating on providing services to its 45 million clients. The agreement is contingent upon normal terms and conditions as well as regulatory clearances. It is anticipated that the transaction will be finished in 2024.