Telenor Group has decided to sell its Pakistan operations to Pakistan Telecommunications Company (PTCL), in a transaction valued at NOK 5.3 billion.
PTCL’s Ufone branded mobile operator has a customer base exceeding 20 million in Pakistan. Telenor has 45 million customers in Pakistan.
This strategic move aligns with Telenor’s broader objective, unveiled during the 2022 Capital Markets Day, of consolidating its presence and fostering leading market positions across Asia. Telenor earlier exited from India. Telenor is exiting from Pakistan after 18 years of successful operations.
Telenor retains a robust portfolio across Asia, comprising Grameenphone in Bangladesh, CelcomDigi in Malaysia, and True Corporation in Thailand. These operations collectively cater to nearly 160 million customers.
The transaction assesses the value of Telenor Pakistan at NOK 5.3 billion, considering a cash-and-debt-free basis. The valuation includes NOK 3.5 billion in intercompany loans repayment and a reduction of interest-bearing liabilities by NOK 1.8 billion, encompassing leases.
Sigve Brekke, CEO of Telenor Group, praised Telenor Pakistan’s evolution into an efficient and forward-thinking telco, highlighting its robust infrastructure, adept distribution network, and a talented team serving an extensive clientele of 45 million customers.
Petter-Borre Furberg, Head of Telenor Asia, highlighted the strategic emphasis on consolidating market leadership in Asia, indicating that the sale would better serve Pakistan with a strong indigenous telecom player.
Assuring continuity in operations, Telenor Pakistan remains focused on delivering quality services to its 45 million customers. The completion of the agreement is contingent upon regulatory approvals and standard terms and conditions, with the transaction anticipated to finalize by 2024.