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PTCL in talks with IFC for $400m loan to acquire Telenor

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1 year ago

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  • BoD authorised PTCL to offer binding purchase offer.
  • PTCL group and IFC at advanced stage for finalising loan.
  • Major chunk of liabilities will be borne by government.

ISLAMABAD: The Pakistan Telecommunication Company Ltd (PTCL) is in discussions with a World Bank subsidiary, the International Finance Corporation (IFC), requesting a loan of approximately $400 million to facilitate the purchase of Telenor Pakistan.

After thorough due diligence was conducted, the PTCL’s Board of Directors, on August 29 this year, authorised the company to present a binding purchase offer to the target company.

Even though the name of the specific company was omitted from the written correspondence with the Security Exchange Commission of Pakistan (SECP) and Pakistan Stock Exchange, it was understood that Telenor Pakistan was planning to sell its stakes and was set to withdraw from the country.

“The PTCL group and IFC are at an advanced stage for finalising a $400 million loan which may be utilised for securing Telenor transaction,” sources told The News on Tuesday.

Telenor’s Board of Directors is expected to meet in November or December 2023 in order to consider granting approval of a binding offer. It was learnt that they have so far received two offers, one from a Lebanese group and the second from the PTCL group.

Now there are relevant and pertinent questions that need to be answered before moving ahead. As per the letter to the stock exchange, the PTCL has shown intent to buy Telenor Pakistan which may have transactions of more than $400 to $500 million.

Although financing will be arranged by the PTCL, since only 26% shares are with another shareholder, it clearly means that the major chunk of liabilities will be borne by the Government of Pakistan.

“Telenor has not applied to the Pakistan Telecommunication Authority (PTA) for any potential buyout nor any document submitted for its proposed plan in relation to the same. The PTA will provide its input as and when Telenor will approach officially,” said a spokesperson for the authority. 

This scribe sent out questions to Telenor Pakistan’s spokesperson inquiring whether they received a binding offer and when they were going to finalise it. The spokesperson replied: “We do not comment on speculative news.”

When asked if the Telenor Asia Pacific head has been visiting Pakistan and whether his visit is part of the deal or not, he replied: “Peter Borre Furberg was appointed Telenor’s Head of Asia recently and started in the role on October 1, 2023. He is visiting Telenor Asia’s operating companies in the region, including Telenor Pakistan, as part of his boarding programme.”

The sources said that the possible deal between the PTCL group and Telenor Pakistan was just at the processing stage, so it has not yet been shared with regulators such as the CCP. All these procedural requirements would be fulfilled once Telenor’s Board granted its assent probably within the two-month period.

A question was also sent to the IFC last Saturday to seek its version but no reply was given till the filing of this report on Tuesday night.

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With its second-largest surge ever, PSX approaches 114,000 points.

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2 days ago

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Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

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In interbank trade, the Pakistani rupee beats the US dollar.

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1 week ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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1 week ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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