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PTCL acquires Telenor, terms the deal a game-changing leap in telecom sector

Telenor Pakistan, with around 45 million subscribers and reported revenue of Rs112 billion in the last twelve months leading to September 2023, stands as a significant player in the mobile operator segment.

ISLAMABAD: PTCL Group welcomed Telenor Pakistan to its family as PTCL bought the latter on Thursday. 

In a statement issued today, PTCL said: “We are set to revolutionize the lives of millions of Pakistanis. Together, we aim to shape a legacy in which innovation and connectivity will merge to better serve our customers and community.”

Pakistan Telecommunication Company Limited (PTCL) has finalized a Share Purchase Agreement (SPA) with Telenor Pakistan (Private) Limited’s shareholders, acquiring the entirety of its shares for Rs108 billion ($385 million).

The company termed the acquisition a game-changing deal.

In a notice issued to Pakistan Stock Exchange, the company said that following the authorization granted by PTCL’s Board of Directors (BoD), the company proceeded to formalize the SPA with Telenor Pakistan’s shareholders. This agreement secures PTCL’s acquisition of 100% of Telenor Pakistan’s shares, valuing it at Rs108 billion, excluding any outstanding debts or cash.

PTCL highlighted that this acquisition is anticipated to bolster the capabilities of the amalgamated entities, enhancing service coverage, quality, and accessibility for both individual consumers and businesses.

Additionally, it’s expected to contribute to Pakistan’s economic growth.

The transaction’s funding will be facilitated through external debt raised by PTCL, while the company’s share price surged to its upper limit on Thursday, indicating market enthusiasm for the development.

Telenor Pakistan, with around 45 million subscribers and reported revenue of Rs112 billion in the last twelve months leading to September 2023, stands as a significant player in the mobile operator segment.

PTCL, known for its assets like Ufone, catering to over 20 million customers, will now see a strategic shift through this acquisition, positioning itself as a dominant player across mobile, fixed, and micro-financing services for more than 70 million customers upon the completion of the transaction.

Both PTCL and Telenor foresee this consolidation as an avenue to unlock synergies within their combined infrastructure assets, aiming to further Pakistan’s digital transformation and bolstering PTCL’s role as a key player in the nation’s technological evolution.

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I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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