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e& subsidiary PTCL acquires full stake in Telenor Pakistan

The investment is expected to reduce the Pakistani telecom market and enhance the sector's long-term outlook.

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.

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