PTCL in Advanced Talks With IFC For $400 Million Loan to Buy Telenor Pakistan

Pakistan Telecommunication Company Ltd (PTCL) is in advanced talks with the World Bank’s International Finance Corporation (IFC) on a $400 million loan to help finance the acquisition of Telenor Pakistan. According to a report by TheNews, Telenor’s Board of Directors will likely meet in November/December 2023 to discuss whether to approve a binding offer. They have thus far received two bids, one from a Lebanese group and the other from PTCL. While just 26 percent of the shares are held by another stakeholder, the Government of Pakistan is expected to bear the majority of the liabilities for the said loan. Also, it bears mentioning that Telenor has not yet filed to the Pakistan Telecommunication Authority for a potential sale nor shared anything for its proposed plan in this regard. The regulator will provide feedback as soon as Telenor makes a formal approach. Meanwhile, insiders suggest that any deal between the PTCL Group and Telenor Pakistan is still in the works and has not yet been revealed to regulators such as the Competition Commission of Pakistan. Such formal prerequisites would be met if Telenor’s Board of Directors gives its approval for the sale, which is expected within the next two months.