KARACHI, September 2024 — Pakistan Telecommunication Company Limited (PTCL) and the International Finance Corporation (IFC)-led consortium celebrated a landmark financing agreement to facilitate PTCL’s acquisition of Telenor Pakistan and Orion Towers (Private) Limited. The acquisition, valued at Rs 108 billion, is subject to regulatory approvals and marks a pivotal moment in Pakistan’s telecom sector.
PTCL initially signed a share purchase agreement with Telenor (ASA) in December 2023 for the full acquisition of Telenor Pakistan and Orion Towers. The acquisition price of Rs 108 billion was agreed on a debt-free, cash-free basis. To secure financing for the acquisition, PTCL approached IFC, and in April 2024, the financing deal was approved by IFC’s Board of Directors. The IFC-led consortium includes the Silk Road Fund (SRF), a Chinese state-owned investment fund, and British International Investment (BII), the UK’s development finance institution and impact investor.
In June 2024, PTCL and IFC finalized the financing deal, securing up to $400 million, which has now been formalized at a special event held in Karachi. The event was attended by notable dignitaries, including Governor of the State Bank of Pakistan, Jameel Ahmad, who was the chief guest. Also in attendance were Hatem Bamatraf, President & Group CEO of PTCL & Ufone 4G; Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan & Afghanistan; the UAE Ambassador; the British High Commissioner; and representatives of the consortium, along with senior executives from PTCL Group.
Governor SBP Commends PTCL and IFC’s Efforts
In his address, Governor SBP Jameel Ahmad emphasized the importance of IFC’s financing in revitalizing confidence in Pakistan’s telecom sector, highlighting its contribution to the national economy. “Pakistan’s telecom and digital sector is crucial to our economic prosperity, and the SBP is fully committed to facilitating this transformative development,” said Ahmad. He further noted that this acquisition could bring wide-ranging benefits to the country.
A Defining Moment for PTCL Group
Hatem Bamatraf, President & Group CEO of PTCL and PTML (Ufone 4G), praised the IFC-led consortium for their critical role in financing the acquisition. He noted, “This financing deal is the largest ever secured in Pakistan’s telecom industry. It strengthens PTCL Group’s position and promotes the long-term financial stability and sustainability of the telecom sector, enabling greater economies of scale. PTCL Group is committed to delivering high-quality cellular and data services to a wider customer base across Pakistan.”
IFC’s Commitment to Pakistan’s Telecom Sector
Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan, and Afghanistan, underscored the potential for growth in Pakistan’s telecommunications market. “This investment reflects IFC’s dedication to fostering inclusive, high-quality digital connectivity and infrastructure in Pakistan. By collaborating with partners like PTCL, the Government of Pakistan, BII, and SRF, we aim to unlock significant opportunities in the sector,” he stated.
Next Steps: Awaiting Regulatory Approval
With the financing deal sealed, PTCL Group is now awaiting approval from the Competition Commission of Pakistan (CCP) to conclude the acquisition. Once finalized, the acquisition is expected to further strengthen Pakistan’s telecom infrastructure and contribute to the nation’s digital and economic development.
At the event, the chief guest, Governor SBP, presented commemorative gifts to the esteemed guests, marking the significance of this historic partnership in Pakistan’s telecom landscape.
