Web Desk — The Pakistan Telecommunication Company Limited (PTCL) is all set to buy Telenor Pakistan – a cellular and digital services provider.
According to media reports, PTCL is eyeing to buy Telenor at a possible price range of $800 million to $1.2 billion.
The PTCL’s board of directors approved the decision to acquire majority shares of Telenor and is interested in buying the cellular company with management control.
The PTCL’s parent company, Etisalat, will give guarantees to raise commercial loans for making this deal.
Issues To Be Settled
There are some outstanding issues to be settled first. For example, Etisalat has to pay an outstanding amount of $800 million on account of PTCL privatization which could not solve since 2005-6.
Another major issue is the transfer of land in the name of Etisalat in different parts of the country. The PTCL’s employees’ issues also remain unresolved. In nutshell, all outstanding issues would have to be settled to strike this deal.
The PTCL will possess two subsidiaries operating in Pakistan — Ufone and Telenor Pakistan if the deal is done.