The Pakistan Telecommunication Company Limited (PTCL) is preparing a non-binding offer for Telenor Pakistan pitching up to US$1.2 billion for the unit, reported local newspaper The News.
Sources speaking to the publication said the PTCL board voted in favour of the acquisition of majority shares in the operator with management control.
Officials from the operator have apparently informed Prime Minster Shehbaz Sharif of intentions to acquire the Telenor unit, seeking his approval as well as Telenor’s board.
Etisalat, PTCL’s parent company, will gain the funds through commercial loans. The deal was proposed to be done in US dollars as requested by Norway-based Telenor, reported The News
Another hurdle could be the outstanding balance of US$800 million which Etisalat has yet to pay the government as part of a resolution when it acquired shares in PTCL in 2006. The state also owns shares in PTCL - the operator that runs the Ufone brand in Pakistan.