e& unit buys Norway’s telecoms subsidiary in Pakistan

e&, formerly known as Etisalat, said its subsidiary in Pakistan will acquire a 100 percent stake in Norway telecom-owned Telenor Pakistan Private Limited.

The transaction has an enterprise value of PKR108 billion ($380.95 million) on a cash-and-debt-free basis, the Abu Dhabi-listed telco said in a statement.

e& holds a 23.4 percent stake in Pakistan Telecommunication Company Limited (PTCL).

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Telenor Pakistan serves 45 million subscribers and has reported revenues of PKR112 billion and a margin of earnings before tax and depreciation of 43 percent as of September 2023.

The deal is likely to drive consolidation in the Pakistani telecom sector and PTCL’s customer base will rise to 70 million upon completion of the transaction.

The deal will add 8 percent and 7 percent to e& international’s revenues and Ebitda, respectively, as of September 2023.

The transaction, which is subject to regulatory approvals, will be financed by external debt that will be raised by PTCL.

Telenor said the move concludes its strategic review of the telco operations in Pakistan, which was announced in July 2022. The deal includes repayment of inter-company loans of $332.79 million and reduced interest-bearing liabilities of $171.15 million, including leases, the Norwegian telecoms major said.

In January, the UAE and Pakistan began negotiations on a comprehensive economic partnership agreement as both countries aim to build on the $10.6 billion bilateral trade registered last year.