If news is to be believed then the Pakistan Telecommunication Company Limited (PTCL) is willing to purchase the Telenor Pakistan for $800 to $1.2 billion price range. PTCLs Board of Directors is willing to purchase majority shares of Telenor Pakistan and to this effect, it is ready to give a non-binding offer soon.
Etisalat, PTCLs parent company, will raise commercial loans to mature this deal. Given the prevailing economic conditions in Pakistan, it is likely that if this deal goes through, money will be paid in the US Dollars and outside of Pakistan.
However, the final nod needs to come from the federal cabinet as the government also owns shares in PTCL. Interestingly, no one has talked about the role of the Competition Commission of Pakistan (CCP), whose prime responsibility is to break monopolies and conglomerates in the country. If the deal goes through, PTCL would own both Ufone and Telenor, acquiring a large chunk of this market.
Let us know what you make of this news.
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