ptcl group’s acquisition of telenor pakistan nears completion
The PTCL Group, a major Telecom Company is in the final Stages of securing a big deal to acquire Telenor Pakistan, another telecom company. They need approval from the State Bank of Pakistan (SBP) for this Deal, Which may Cost around $400 million and they expect to Finish it by November 2023.
To make this Deal happen the PTCL Group is talking to a Group of lenders including the International Finance Corporation (IFC) a part of the World Bank and a Chinese Company to get a Loan. But there are many Questions about this deal.
One Big question is whether the Chairman of the PTCL Board has received approval from the Government Committees and the cabinet for this acquisition. Another issue is how they’ll transfer the Money to another country as the company they’re buying wants the funds in Foreign Currency accounts. Plus, they need the SBP’s approval considering the Economic situation.
There’s also a matter about Properties owned by PTCL which has caused an $800 million dispute over the Past 15 years. They need to resolve this dispute. And people are Questioning if the interim Government has the authority to make Such a big Decision.
As the Government plans to sell its assets to Foreign investors this Deal will increase the Government’s financial Responsibilities because its Stakeholding company will take on more Dollar loans. Some Government Representatives are in the PTCL’s Board, so it’s unclear how they can approve this when the Government is the majority owner.
This Deal has reached a significant stage but many questions remain. Once Telenor’s Board meets by the End of November to approve the deal, they’ll need various Regulatory approvals from different authorities.
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The IFC Spokesperson couldn’t provide details as they’re in the final Stages of this deal. We also asked the SBP for comments, but we’re still waiting for their response.
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These Developments show that Significant business transactions involve many Complexities and Require approvals from various authorities which will become clearer as they Progress.