Monday, June 17, 2024
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HomeNEWSPTCL acquires Telenor Pakistan for Rs.108 billion

PTCL acquires Telenor Pakistan for Rs.108 billion

Pakistan Telecommunication Company Limited (PSX: PTCL) has signed a Share Purchase Agreement (SPA) with the shareholders of Telenor Pakistan (Private) Limited (TPL) to buy 100% of TPL’s shares, based on an Enterprise Value of Rs108 billion ($380 million).

According to PTCL’s filing on the Pakistan Stock Exchange on Thursday, the deal will be done on a cash-free, debt-free basis and PTCL will fund the acquisition through external debt that it will raise.

Telenor Pakistan is a leading mobile operator serving 45 million subscribers with reported revenue of Rs112 billion and EBITDA margin of 43% based on the last 12 months (LTM) September 2023 financial reporting.

The transaction will enable in-market consolidation in the telecom sector, which will improve the long-term outlook of the industry.

PTCL is Pakistan’s leading information communication technology (ICT) company with market capitalisation of Rs 49 billion ($173 million), and the country’s largest fixed-line network.

The company’s products/services include voice services and high-speed broadband internet among others. PTCL holds 100% stake in Ufone and U Microfinance Bank. It is 62% owned by Government of Pakistan and 26% owned by Etisalat of UAE.

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