Emirati company is in talks to acquire Telenor Pakistan. Due to the recent economic crisis in the country and the rising cost of doing business. Talks are ongoing with the Emirati company for the sale of Pakistan’s second largest cellular company, Telenor.
According to a report, Telenor Pakistan is in talks with an Emirate-based multinational telecom company to sell its operations.
A spokesperson for Telenor Pakistan refuses to discuss the progress in the ongoing negotiations. But insiders tell that the talks between Telenor and the Emirates company reaches the final stages.
Sources in the IT ministry confirms that the deal between the two companies is in progress.
According to a report last November by the American television network Bloomberg, the Norwegian telecom company will launch a bid to sell the company with the support of its Citigroup.
But according to industry sources, the Norwegian company approach not one but two leading multinational investment banks to sell the business.
Sources says that the Emirati company is prominent in almost all major telecom sectors in Pakistan. This company shows interest in consolidating its position further. Emirati company is in talks to acquire Telenor Pakistan.
Attributing the sale to rising cost of doing business, sources said the company suffered losses due to the rising value of the US dollar.
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The company’s operational costs reaches $5.5 million. The largest portion of which spent on electricity prices.
According to documents, during the last financial year the company incurred $1.7 million in electricity bills to maintain infrastructure.
In this regard, experts say that it is understandable that Telenor Pakistan will consider to reduce the losses. As per the company’s point of view, Telenor will do its business where the business opportunities are wider than in Pakistan.
The company offers $1 billion to $1.2 billion. But the company that is interested in Telenor wants to invest between $78 million and $91 million.