The Telenor Group on Thursday announced the sale of its Pakistan telco operations to Pakistan Telecommunications Company Ltd. (PTCL) as part of the company’s strategy to build and scale market-leading players in Asia.
The remaining Telenor Asia portfolio comprises market-leading operators Grameenphone in Bangladesh, CelcomDigi in Malaysia and True Corporation in Thailand, with close to 160 million customers.
“It [sale] concludes the strategic review of the telco operations in Pakistan, which was announced in July 2022,” Telenor Group said in a statement.
“The transaction values Telenor Pakistan at NOK 5.3 billion ($494 million) on a cash-and-debt-free basis. This includes repayment of intercompany loans of NOK 3.5 billion ($326 million) and reduced interest-bearing liabilities of NOK 1.8 billion ($168 million), including leases.”
“Our decision to pursue the sale of our Pakistan operations follows 18 successful years of operations in the country, which started as a greenfield rollout,” Sigve Brekke, CEO Telenor Group, said.
“We are proud of the company Telenor Pakistan is today. It is an efficient and future-ready telco operator, with a strong distribution network and talented team serving 45 million customers.”
Brekke said by selling to the country’s largest integrated ICT company, Telenor believed the consolidation move would help strengthen Pakistan’s telecoms sector, creating opportunities in new areas of growth to the benefit of consumers in Pakistan.
“We systematically considered all alternatives during the strategic review process and believe that, following a sale, the market will be better served by a strong local champion,” Petter-Børre Furberg, Head of Telenor Asia, added.
“Our strategy in Asia is to build number one positions in the markets we operate, with scale as a pre-requisite for value creation and profitable growth.”
Telenor Pakistan will continue its business as usual and focus on delivering services to its 45 million customers.
The agreement is subject to regulatory approvals and other customary terms and conditions.
The transaction is expected to be completed during 2024.
