Norwegian telecommunications giant, Telenor ASA is reportedly poised to conclude its deliberations on the divestment of its operations in Pakistan by the end of the year, as per sources familiar with the matter.
In a recent interview in Oslo, CEO Sigve Brekke affirmed the ongoing strategic review, indicating that the company is engaged in discussions with various potential parties, with multiple options currently under consideration. Brekke emphasized that a decision will be reached before the conclusion of this year.
Telenor has been actively restructuring its operations to enhance capital efficiency and minimize associated risks. Notably, it has initiated the integration of its Thai unit with True Corp Pcl and its Malaysian unit with Axiata’s Celcom Networks Bhd.
In the preceding year, the company also finalized a deal with a consortium led by KKR & Co. for the divestment of a minority stake in its Norwegian fiber network.
Following an impairment of 2.5 billion Norwegian kroner ($220 million) on its Pakistan unit, Telenor initiated the process of inviting bids for the business last year, as reported by Bloomberg.
In August, Pakistan Telecommunication expressed its bid for a target company; however, the recipient of the bid was not disclosed.
The CEO further indicated the company’s openness to potential consolidation prospects in the Nordic region, while closely monitoring the European Union’s stance on corporate deals, particularly in Spain, to evaluate the feasibility of telecommunications industry mergers.
Telenor’s previous experience with the EU, notably the failed merger of its Danish businesses with TeliaSonera AB in 2015, underlines the significance of regulatory compliance in its strategic decision-making process.
