Pakistan Telecommunication Company Limited (PTCL) is prepared to make a non-binding bid to buy Telenor Pakistan for a price that might range from $800 million to $1.2 billion. Last Monday, the PTCL Board of Directors approved the expression of interest in acquiring the majority of Telenor Pakistan’s shares. They want to buy Telenor Pakistan and retain management control.
The parent company of P TCL, Etisalat, will provide guarantees to raise commercial financing in order to close this purchase. Before moving forward with a definitive offer to complete the acquisition, preparations must be resolved because Telenor’s management has requested payment to be made in US dollars.
Shehbaz Sharif, the prime minister, had been informed of PTCL’s interest in acquiring Telenor Pakistan’s stock. According to the official sources, the PTCL will make its offer to complete this deal if both parties accept the non-binding offer.
There are other difficulties that need to be resolved, such as Etisalat’s request to the government that they be prepared to pay the deal’s sum in dollars outside of Pakistan in light of the country’s continuing dollar liquidity crisis.
If the purchase goes through, the PTCL will own two Pakistani-based companies, 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.
Because the Government of Pakistan also owns shares in PTCL, the Economic Coordination Committee of the Cabinet and Federal Cabinet will need to provide their permission if the binding offer is made by PTCL.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar presided over a discussion on the telecom industry at the Finance Division, according to a formal notice released by the Ministry of Finance Monday evening.