• 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.