KARACHI: Pakistan Telecommunications Company Limited (PTCL) has achieved a significant milestone in its acquisition journey, finalizing formal financial agreements with an International Finance Corporation (IFC)-led consortium.
The agreement aims to secure up to $400 million to fund the acquisition of Telenor Pakistan and Orion Towers (Pvt.) Limited. Following the approval from the IFC Board of Directors in April 2024, PTCL proceeded with the Share Purchase Agreement (SPA) signed last December, acquiring 100% of Telenor Pakistan’s shares from Telenor ASA.
The IFC-led consortium, including the Silk Road Fund (SRF) and British International Investment plc (BII), has now formalized a $400 million facility with a seven-year tenor. This financing will be repaid through quarterly installments, with a one-year capital grace period. The consortium’s commitment aligns with efforts to boost digital connectivity and bridge Pakistan’s digital infrastructure gap.
Hatem Bamatraf, President and Group CEO of PTCL & Ufone 4G, expressed enthusiasm about the financing deal’s realization, emphasizing its transformative potential in Pakistan’s telecom sector. Bamatraf highlighted PTCL’s readiness to expand its service offerings pending regulatory approvals required to finalize the acquisition.
The disbursement of funds is contingent upon meeting the specified conditions outlined in the financing agreements, marking a pivotal step towards completing the acquisition process.
