The investment is expected to reduce the Pakistani telecom market and enhance the sector’s long-term outlook.
Strategic Acquisition
Pakistan Telecommunication Company Limited (PTCL), a subsidiary of UAE’s telecommunications powerhouse, e&, has finalized a deal to acquire a 100 percent stake in Telenor Pakistan.
The agreement, inked with Norwegian Telenor ASA, values the enterprise at PKR108 billion ($380 million), based on a cash-free, debt-free assessment.
Market Dynamics and Subscribers
Telenor Pakistan boasts an extensive subscriber base exceeding 45 million individuals. With reported revenue of PKR112 billion ($400 million) and an impressive EBITDA margin surpassing 43 percent in the 12-month financial reporting ending in September 2023, the company holds a substantial position within the telecom sector.
Long-term Outlook and Consolidation
In a regulatory filing with the Abu Dhabi Securities Exchange (ADX), e& highlighted that this transaction signifies a significant opportunity for in-market consolidation within the Pakistani Telecom market.
The acquisition is expected to enhance the long-term prospects of the telecom sector, underlining a strategic move aimed at fostering growth and stability in the industry.
