Pakistan Telecommunication Company Limited (PTCL) has signed an agreement with the shareholders of Telenor Pakistan (Private) Limited to purchase 100 per cent shares at Rs108 billion.
The PTCL shared the latest development in a notice sent to the Pakistan Stock Exchange on Thursday.
“Further to our letter dated August 29, 2023, whereby the Board of Directors (BoD) of PTCL had authorized the company to offer a binding offer to the target company. In view of the above, this is to notify your good office that consequent to the approval of the BoD of the company, it has entered into a Share Purchase Agreement (SPA) with the shareholders of TPL for the acquisition of 100% shares of TPL, based on an Enterprise Value of Rs108 billion on a cash free, debt-free basis,” read the notice.
The PTCL shared that the transaction will be financed by external debt that will be raised by the company.
“The transaction will also improve the capabilities of the combined entities and result in improved coverage and quality of services to customers and enable wider access to communication solutions for businesses while supporting economic growth of Pakistan,” read the notice.
As per the media reports, PTCL’s share price hit the upper limit with over 1.76 million shares changing hands on Thursday.
Telenor Pakistan is serving around 45 million subscribers with revenue of Rs112 billion based on last twelve months financial reporting.
PTCL already owned Ufone, a mobile company with over 20 million subscribers.
