PTCL acquires 100pc shares of Telenor Pakistan for Rs108bn

The Pakistan Telecommunication Company Ltd (PTCL) said on Thursday it has signed a share purchase agreement with Telenor Pakistan to buy 100 per cent of its shares based on an enterprise value of Rs108 billion ($380 million). The deal, structured on a cash-free, debt-free basis, is subject to regulatory approvals and customary closing conditions, the PTCL said in a statement. PTCL’s share price rose 8.3 per cent on Thursday. The company said it is “actively working towards a smooth transition process to ensure minimal disruption for employees, customers, and other stakeholders”. Hatem Bamatraf, president and group CEO of PTCL and Ufone, hoped the deal would result in “enhanced value for our customers and stakeholders as they are the ultimate beneficiaries of this transaction”. However, a Telenor Pakistan executive, requesting anonymity, observed that it was not a good sign that a foreign investor was leaving the country, apparently due to difficult economic conditions. Besides, some Telenor employees might be laid off because of the deal, he said. PTCL, which holds 100pc stake in Ufone and U Microfinance Bank, is 62pc owned by the government of Pakistan and 26pc by the UAE telecom operator Etisalat by e&. Telenor Pakistan, launched 18 years ago, has 45.2 million customers, according to the Pakistan Telecommunication Authority (PTA). This suggests that Ufone, which has 25.2m subscribers, will have over 70.4m users after the deal, almost equal to those of Jazz, which acquired Warid Telecom some eight years ago.