Islamabad December 14 2023: Pakistan Telecommunication Company entered into Share Purchase Agreement with the shareholders of Telenor Pakistan (Private) limited (TPL) for the acquisition of 100% shares of TPL.
To highlight, earlier the Board of Directors of Pakistan Telecommunication Company limited (PTC/Company) had authorized the Company to offer a binding offer to the target company.
ln view of the above, this is to notify your good office(s) that consequent to the approval of the Board of Directors of the Company, it has entered into a Share Purchase Agreement (SPA) with the shareholders of Telenor Pakistan (Private) limited (“TPl”) for the acquisition of 100% shares of TPL, based on an Enterprise Value of PKR 108bn on a cash free, debt free basis (the “Transactional. The Transaction will be financed by external debt that will be raised by the Company.
Telenor Pakistan is a strong mobile operator serving -45 million subscribers with reported revenue of PKR 112bn and EBITOA margin of -43% based on last twelve months (LTM) September 2023 financial reporting. The Transaction provides an opportunity for in-market consolidation in the telecom market which will predominantly lead to an improved Jong-term outlook of the telecom sector. The Transaction wilt also improve the capabilities of the combined entities and results in improved coverage and quality of services to customers and enable wider access to communication solutions for businesses while supporting economic growth of Pakistan. It will further strengthen the position of PTCL Group as a leading operator in Mobile, fixed and microfinancing serving more than 70 million customers, upon completion ofthe transaction. We expect that the combined infrastructure assets of both entities shall unlock value in synergies. PTCL efforts to build a prosperous and digitally connected nation and position PTCl as the national champion to support Pakistan’s digital transformation.
The above Transaction is subject to all corporate/regulatory approvals, completion of formalities, and signing of necessary agreements /instrument(s) and customary closing.
