ISLAMABAD: The International Finance Corporation (IFC) has approved the debt financing of up to $400 million to Pakistan Telecommunication Limited (PTCL) for the acquisition of Telenor Pakistan Limited (TPL).
This information was publicised by the PTCL through a notice to the Pakistan Stock Exchange (PSX) on Monday under rule 5.6.1 of the Rule Book of the PSX with Section 96 and other enabling provisions of the Securities Act 2015.
The finalisation of work streams to sign financing agreements with IFC, a subsidiary of the World Bank, is underway and expected to be completed on or before July 31, 2024, the PTCL said in its notice.
It further added that the details of the debt financing shall be disclosed upon the finalisation of financing agreements. In case of any development in this respect, PSX shall accordingly be notified as per applicable laws.
Back in October last year, it was reported that PTCL was in talks with the International Finance Corporation to secure a loan of $400 million for the acquisition of Telenor Pakistan.
PTCL’s recent notice recalls that on December 14, 2023, its board notified that the telecom giant has entered into a Share Purchase Agreement (SPA) with the shareholders of Telenor Pakistan for the acquisition of 100% shares, based on an enterprise value of Rs 108 billion on a cash-free, debt-free basis. The transaction will be financed by external debt that the PTCL will raise.
PTCL, which holds a 100% stake in Ufone and U Microfinance Bank, is 62% owned by the Government of Pakistan and 26% by the UAE’s telecom operator Etisalat by e&.
