The price range for PTCL’s non-binding offer to buy Telenor Pakistan might be between $800 million and $1.2 billion.
Last Monday, the PTCL Board of Directors approved the expression of interest in acquiring the majority of Telenor Pakistan’s shares. They want to buy Telenor Pakistan and retain management control.
The parent firm of PTCL, Etisalat, will provide guarantees to raise commercial loans in order to close this purchase. Before moving forward with a definitive offer to complete the deal, arrangements must be resolved because Telenor’s management has requested payment to be made in US dollars.
High-ranking government officials revealed that the PTCL has expressed interest in buying Telenor Pakistan shares to Prime Minister Shehbaz Sharif. According to official sources, the PTCL will make its offer to complete this deal if both parties accept the non-binding offer.
There are other difficulties that need to be resolved, such as Etisalat’s request to the government that they are prepared to pay the dealer’s sum in dollars outside of Pakistan in light of the country’s continuing dollar liquidity crisis.
There are still some unresolved concerns, including Etisalat’s obligation to pay an outstanding $800 million due to the privatization of PTCL, a problem that has persisted since 2005–2006.
In several regions of the nation, there are still unresolved concerns with the transfer of land in the name of Etisalat. Thirdly, there are still unsolved issues with the PTCL employees. As a result, this agreement would only be possible if all outstanding issues were resolved.
If the deal is done, then the PTCL will possess two subsidiaries operating in Pakistan — Ufone and Telenor Pakistan. Ufone’s balance sheet does not allow it to acquire another major stakeholder in the market so Etisalat is ready to play its role in finalizing this expected deal.
Because the Government of Pakistan also owns shares in PTCL, the Economic Coordination Committee of the Cabinet and Federal Cabinet will need to provide their permission if the binding offer is made by PTCL.
