Saturday, October 21, 2023
A possible deal is expected to be completed by November 2023.
Many questions have been raised about this possible deal.
"We are currently in the final stages of engagement," IFC tells spox.
ISLAMABAD: A possible financial deal between PTCL Group and Telenor Pakistan is expected to be finalized by next month as the State Bank of Pakistan (SBP) has sought regulatory approval for the acquisition of the Norwegian mobile firm, The News reported. On Saturday.
The PTCL Group is negotiating a loan of up to $400 million from a private sector lending consortium of the World Bank, the International Finance Corporation (IFC) and a Chinese firm. A potential deal is expected to be completed by November 2023.
"PTCL Group has approached a consortium of lenders including the World Bank's Private Sector Lending Branch and Chinese firms to secure a $350-400 million loan to buy Telenor Pakistan," sources confirmed to The News on Friday.
Many questions have been raised about this possible deal. It is yet to be seen whether PTCL Chairman has accepted the approval of ECC and Cabinet. How will this amount be transferred to another country, since the seller wants funds in his accounts in a foreign currency? Has SBP given its approval under these economic conditions? What will happen to the real estate transfer in the name of PTCL, which has stuck $800 million over the last one and a half decades? Will this long-running dispute over the $800 million debt be resolved? Is the interim government fully authorized to make such big decisions?
The government is about to sell its assets to foreign investors. But in the case of this deal, the government would increase its liability burden, under which its holding company would underwrite more dollar loans. There are federal secretaries representing the government of Pakistan on the board of PTCL, so how will they give approval if the Republican party holds majority stake in PTCL?
All these related questions require proper answers before completing this transaction.
An IFC spokesperson said: “We are currently in the final stage of the commitment so we cannot comment on this transaction at this time. I am happy to speak with you once this is completed.'
The News has also reached out to the SBP spokesperson for comment but is yet to receive a response.
When Telenor's board meets, likely by the end of November, and gives its approval, regulatory procedural approvals will be required from relevant regulators, including the PTA and CCP.
Meanwhile, the IT secretary met Telenor's Asia head Børre Furberg in his office on Friday.
According to an official statement made here, Federal Secretary for IT and Telecommunication Hassan Nasir Jamy said that the government is taking vigorous steps to ensure maximum facilities for the telecommunication sector.
