PTCL, which is majority owned by the state, is reportedly planning to make an offer between $800 million and $1.2 billion.
In order to acquire Telenor Pakistan, the Pakistan Telecommunication Company Ltd. (PTCL) is putting together a non-binding offer. PTCL, which is majority owned by the state, is reportedly planning to make an offer between $800 million and $1.2 billion.
It’s no secret that Telenor has been considering leaving Pakistan; last year, the state-owned Norwegian telco issued an invitation for bids in the neighborhood of $1 billion.
The parent company of PTCL, Etisalat, will provide guarantees to raise commercial loans in order to close this deal. Before moving forward with a binding offer to complete the deal, arrangements must be finalised because Telenor’s management has requested payment be made in US dollars.
Top government officials confirmed that the PTCL had informed the Prime Minister of their interest in purchasing Telenor Pakistan’s shares on Monday.
According to the official sources, the PTCL will make its offer to complete this transaction if both parties accept the non-binding offer. If the deal goes through, the PTCL will own two Pakistan-based subsidiaries, Ufone and Telenor Pakistan.
Because Ufone’s balance sheet prevents it from acquiring another significant market player, Etisalat is prepared to contribute to the completion of this anticipated transaction. After deciding to sell its operations in Myanmar to Lebanese holding company M1 Group for $105 million, Telenor finally left Myanmar last year.
The Economic Coordination Committee of the Cabinet and the Federal Cabinet will have to approve the binding offer if it is made by PTCL because the Government of Pakistan also owns shares in that company.
Federal Minister for Finance and Revenue Senator presided over a meeting on the telecom industry at the Finance Division, according to a formal announcement made by the Ministry of Finance Monday evening.
The meeting was attended by the Federal Ministers of IT and Telecommunication, Law and Justice, Finance and Privatization, and IT and Telecommunication. The meeting discussed the telecom sector in general and PTCL in particular.