The Pakistan Telecommunication Company Limited (PTCL) has taken a significant step towards the acquisition of Telenor Pakistan, a prominent cellular and digital services provider. This decision was confirmed by PTCL on Tuesday after receiving board approval to submit a binding offer for the purchase. PTCL had previously submitted a non-binding offer to Telenor Pakistan, and with the board’s endorsement, it is now prepared to make a formal binding offer, pending confirmation from the State Bank of Pakistan (SBP) regarding the mode of payment. The official offer to Telenor Pakistan is expected to be extended on either September 1st or 2nd.
Telenor Pakistan has also received a competing bid from a Lebanese investor, and the company will now assess both offers before reaching a final decision. Sources close to the matter suggest that the sale of Telenor Pakistan could fetch anywhere from $500 million to $700 million.
In an official communique to the Pakistan Stock Exchange, PTCL announced that, following a comprehensive due diligence process, the company’s board of directors, on August 29, 2023, authorized the submission of a binding offer to Telenor Pakistan.
Earlier this year, PTCL had made a non-binding offer to acquire Telenor Pakistan, expressing interest in acquiring a majority stake in the cellular company, along with management control. The proposed price range for the acquisition at the beginning of the year was estimated to be between $800 million and $1.2 billion.
Etisalat, PTCL’s parent company, has provided assurances that it will secure commercial loans to facilitate the completion of this significant transaction.
