Pakistan Telecommunication Company Limited (PTCL), a subsidiary of UAE telecommunications giant e& with 23.4 percent ownership, has agreed 100 percent stake in Telenor Pakistan.
The agreement, signed with Norwegian Telenor ASA, is based on an enterprise value of PKR108 billion ($380 million) on a cash free, debt free basis.
Telenor Pakistan has over 45 million subscribers with reported revenue of PKR112 billion ($400 million) and EBITDA margin in excess of 43 percent based on September 2023’s 12-month financial reporting.
In a regulatory filing with Abu Dhabi Securities Exchange (ADX), e& said “the transaction provides an opportunity for in-market consolidation in the Pakistani Telecom market which will predominantly lead to an improved long-term outlook of the telecom sector.
“It will 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.”
The acquisition will strengthen the position of PTCL Group as a leading operator in mobile, fixed and microfinancing serving more than 70 million customers.
E&’s strategic acquisition
In the release, e& added: “The transaction aligns with the company’s objective to enhance the growth profile of the international telecom vertical by accelerating e& and PTCL efforts to build a prosperous and digitally connected nation and position PTCL as the national champion to support Pakistan’s digital transformation.”
The financial impact of the transaction represents an incremental of approximately 8 percent and 7 percent of e& international’s revenues and EBITDA respectively.
The deal will be financed by external debt that will be raised by PTCL. Completion of the transaction is subject to regulatory approvals and customary closing conditions.
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