ISLAMABAD: The Board of Directors (BoD) of the International Finance Corporation (IFC), a member of the World Bank Group, has greenlit debt financing of up to $400 million for Pakistan Telecommunication Company Limited (PTCL) to facilitate its acquisition of Telenor Pakistan (Private) Limited.
PTCL announced this development in a notice sent to the Pakistan Stock Exchange (PSX) on Monday, revealing, “The Board of Directors of the International Finance Corporation (IFC) has approved the debt financing up to $400 million to PTCL for the acquisition of Telenor Pakistan.”
The company disclosed that the finalization of workstreams to formalize financing agreements with IFC is currently underway and is anticipated to conclude on or before July 31, 2024. “The details of the debt financing shall be disclosed upon the finalization of financing agreements,” it stated.
Following the announcement, PTCL’s share price surged to Rs17.12, marking a 5.74% increase at the time of reporting.
Last year, in a significant consolidation move within the telecom sector, PTCL inked a Share Purchase Agreement (SPA) with Telenor Pakistan’s shareholders, acquiring 100% of the shares for Rs108 billion ($385 million) on a cash-free, debt-free basis.
“The transaction offers an opportunity for in-market consolidation in the telecom sector, which is expected to enhance the long-term outlook of the industry,” PTCL stated in a previous announcement. “It will also bolster the capabilities of the combined entities, leading to improved service coverage and quality for customers, facilitating broader access to communication solutions for businesses, and supporting Pakistan’s economic growth.”
Upon completion of the transaction, PTCL anticipates that it will reinforce the PTCL Group’s position as a prominent player in mobile, fixed, and micro-financing, serving a customer base exceeding 70 million.
PTCL’s principal assets include Ufone, a major mobile operator in Pakistan with over 20 million subscribers. It is operated by Etisalat under an agreement with the Pakistani government, which retains the majority stake.
According to the company’s most recent financial results, PTCL Group’s revenue surged by 25.8% year-over-year to Rs190.6 billion, primarily fueled by robust performance in the consumer segment.
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