PTCL Celebrates Landmark Financing Deal for Telenor Acquisition

KARACHI - In a significant development for Pakistan's telecommunications landscape, Pakistan Telecommunication Company Limited (PTCL) has joined forces with the International Finance Corporation (IFC) to celebrate a landmark financing deal. This agreement, which is still pending regulatory approvals, pertains to PTCL's acquisition of Telenor Pakistan and Orion Towers (Private) Limited. The formal event took place in Karachi, marking a pivotal moment in the industry.

Back in December 2023, PTCL signed a share purchase agreement with Telenor (ASA) to acquire 100% of the shares in Telenor Pakistan and Orion Towers (Pvt.) Ltd. The acquisition price was set at a staggering PKR 108 billion, calculated on a debt-free and cash-free basis. To facilitate this ambitious project, PTCL sought financing from the IFC, which received approval in April 2024, subsequently endorsed by the IFC Board of Directors.

The consortium led by IFC includes notable partners such as the Silk Road Fund (SRF), a Chinese state-owned investment fund, and British International Investment (BII), the UK's development finance institution. This collaboration underscores the growing interest and investment in Pakistan's telecom sector.

The event was graced by the presence of Jameel Ahmad, the Governor of the State Bank of Pakistan, who served as the chief guest. Other distinguished attendees included Hatem Bamatraf, President & Group CEO of PTCL & Ufone 4G, Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan & Afghanistan, and various representatives from the consortium and PTCL Group.

During the event, Governor Jameel Ahmad emphasized the importance of IFC’s financing in revitalizing confidence in Pakistan’s telecom sector. He stated, "IFC’s financing in Pakistan’s telecom sector reinvigorates confidence in the sector’s growth potential. Pakistan’s telecom and digital sector is one of the important contributors to the national economy, and its growth and sustainability can play an important role towards the country’s economic prosperity."

Hatem Bamatraf expressed gratitude towards the IFC-led consortium, highlighting the transformative nature of this deal. He remarked, "We are deeply appreciative of the IFC-led consortium for their pivotal role in financing this transformative deal, which marks a defining moment for Pakistan’s telecom sector. This is the largest single financing ever secured in the industry, and it not only strengthens PTCL Group but also supports the long-term financial stability and sustainability of the entire telecom sector by enabling greater economies of scale."

Khawaja Aftab Ahmed also shared insights on the investment, stating, "Pakistan’s telecommunication market offers significant opportunities for growth and investment. This investment reflects IFC’s commitment to bolstering inclusive, high-quality digital connectivity and infrastructure in the country by working together with our partners, including the PTCL Group, Government of Pakistan, as well as co-investors BII and SRF."

As the event concluded, the chief guest presented memorabilia to the esteemed guests on behalf of the PTCL Group. With the financing deal now sealed, PTCL Group is eagerly awaiting approval from the Competition Commission of Pakistan (CCP) to finalize the acquisition.

This acquisition is not just a corporate transaction; it represents a significant step towards enhancing digital connectivity in Pakistan. As the telecom sector continues to evolve, such investments are crucial for fostering innovation and improving services for millions of users across the country. The collaboration between PTCL and IFC, along with their partners, is a promising sign of the potential growth and development that lies ahead for Pakistan's telecommunications industry.