According to the sources, the budding deal between Pakistan Telecommunication Company Ltd. (PTCL) and Telenor Pakistan is still in its initial stages, and as such, it has not yet been shared with governing bodies such as the Competition Commission of Pakistan (CCP).
In an important development within the telecom sector, PTCL is in talks with the International Finance Corporation (IFC), a subsidiary of the World Bank, to secure a loan of $400 million for a potential purchase of Telenor Pakistan. The News website said, citing reliable sources, that it has been verified that PTCL and IFC are presently in the advanced phases of closing the $400 million loan agreement.
Following an inclusive due diligence procedure, PTCL’s Board of Directors approved the submission of a binding offer for Telenor Pakistan on August 29, 2023. While the official papers did not openly mention the company’s name, it was extensively known that Telenor Pakistan was preparing to strip its holdings and exit Pakistan.
Telenor’s Board of Directors is likely to convene in either November or December 2023 to consider and possibly accept a binding offer. Sources said before that Telenor Pakistan had already received two offers, the 1st from a Lebanese Group and 2nd from PTCL.
But some critical questions must be addressed before proceeding. PTCL has stated its intent to purchase Telenor Pakistan; a deal would be between $400 and $500 million. Given that only 26% of the shares are held by another stakeholder, it suggests that the majority of the financial burden will fall upon the Government of Pakistan.
Further, sources said that the potential deal between PTCL and Telenor Pakistan is still in its initial stages, and as such, it has not yet been shared with regulatory bodies such as the Competition Commission of Pakistan (CCP). These practical requirements will be completed once Telenor’s board provides its sanction, which is predictable before December 31, 2023.
According to the report, meanwhile, the Pakistan Telecommunication Authority (PTA) explained that Telenor had not officially approached the PTA for any potential acquisition of related documents. Telenor Pakistan’s representative failed to comment on whether they had received a binding offer and when it would be confirmed and termed the visit of Telenor Asia Pacific “TAP” Head as part of his onboarding program.