What’s Happening with the PTCL-Telenor Deal? 🤔
The much-anticipated PTCL-Telenor deal—in which Pakistan Telecommunication Company Limited (PTCL) is set to acquire Telenor Pakistan—has hit a roadblock! 🚧 The transaction, initially expected to wrap up earlier, is now facing delays due to pending regulatory approvals. However, industry insiders suggest that the deal is still on track to close within the next two months.
📜 Background of the PTCL-Telenor Deal
🔹 Agreement Signed – PTCL and Telenor Group signed the acquisition agreement on December 14, 2023. 🔹 100% Stake Transfer – The deal involves PTCL taking over Telenor Pakistan’s telecom operations. 🔹 Regulatory Delays – Clearance processes and customary terms have caused postponements. 🔹 Revised Timeline – Reports now indicate the deal could extend into early 2025.
As of December 31, 2024, Telenor Pakistan has yet to be classified as held for sale due to ongoing regulatory approvals. 📅
📊 Telenor Pakistan’s Financial Performance Amid Uncertainty
Despite these delays, Telenor Pakistan continues to thrive financially. Here’s how:
📈 12% Growth in Service Revenue – Driven by strong monetization strategies 💰 📈 13% Increase in ARPU – Counterbalancing a 2.7% dip in subscriber base 📡 📈 25.2% EBITDA Growth – Thanks to lower fuel prices & cost optimizations ⚡
However, the company remains cautious due to Pakistan’s economic and political instability, citing concerns over inflation, civil unrest, and financial uncertainty. 🔍
🌏 PTCL-Telenor Deal in the Regional Context
While Telenor Pakistan shows strong performance, the broader Asian telecom market faces headwinds:
📉 3.3% Drop in Asian Service Revenues – Largely due to Grameenphone’s struggles in Bangladesh 🇧🇩 📉 5.7% EBITDA Decline in Asia – Driven by macroeconomic pressures 📊 ✅ IoT Expansion by Amp’s Connexion – Helping offset some losses in the region 🔗
Telenor Pakistan also recognized a NOK 227 million deferred tax asset, positively influencing the group’s effective tax rate. However, total other expenses for the quarter reached NOK 400 million, including:
🔻 Losses on Asset Disposals 🔻 Workforce Reductions
🔮 What’s Next for PTCL & Telenor Pakistan? 📢
The deal remains on track for closure in the first half of 2025, barring further regulatory complications. With Pakistan’s telecom industry evolving rapidly, this acquisition could reshape the competitive landscape! 📶
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