Acquisition of Telenor Pakistan: PTCL and IFC-led syndicate celebrate historic financing deal

KARACHI: Pakistan Telecommunication Company Limited (PTCL) and the International Finance Corporation (IFC) led consortium came together to formalize and celebrate the historic financing deal for PTCL’s acquisition (subject to regulatory approvals) of Telenor Pakistan and Orion Towers (Private) Limited at a special event in Karachi.

PTCL signed a share purchase agreement with Telenor (ASA) in December 2023 for the acquisition of 100% shares in Telenor Pakistan and Orion Towers (Pvt.) Ltd at the acquisition price of Rs 108 billion (on debt free cash free basis). PTCL approached IFC for financing of the project, which was subsequently approved in April 2024, and endorsed by the IFC Board of Directors. The IFC-led consortium includes the Silk Road Fund (SRF), a Chinese state-owned medium-to-long-term investment fund, and British International Investment (BII), the UK’s development finance institution and impact investor.

Governor, State Bank of Pakistan, Jameel Ahmad was the chief guest of the event, which was also attended by President & Group CEO, PTCL & Ufone 4G, Hatem Bamatraf; IFC’s Regional Director for the Middle East, Pakistan & Afghanistan, Khawaja Aftab Ahmed, UAE Ambassador, British High Commissioner, representatives of the consortium, senior and top executives from the PTCL Group.

The event marked the most significant milestone in the realization of PTCL’s upcoming acquisition of Telenor Pakistan and Orion Towers, following the signing of the financing deal in June 2024 to secure up to $400 million.

Speaking at the event, chief guest, Governor SBP, Jameel Ahmad said, “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 country’s economic prosperity. Ahmad stated that the SBP is fully committed and facilitating this transformative development and expect this would bring wide-ranging benefits to the country.”

Hatem Bamatraf, President and Group CEO, PTCL & PTML (Ufone 4G), commented, "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. As a result, the industry will be better positioned to contribute to the national economy and societal progress. Through this strategic move, PTCL Group remains fully committed to delivering high-quality cellular and data services to an even wider customer base across Pakistan in the near future."

“Pakistan’s telecommunication market offers significant opportunities for growth and investment,” said Khawaja Aftab Ahmed, IFC's Regional Director for the Middle East, Pakistan and Afghanistan. “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.”

The chief guest presented memorabilia to the worthy guests on behalf of the PTCL Group. Having sealed the financing deal, PTCL Group is awaiting the Competition Commission of Pakistan (CCP) approval to conclude the acquisition.

Copyright Business Recorder, 2024