Telenor ASA — M&A Activity 2023

Dec 14, 2023

Divestment of Telenor Pakistan

Divestment of Telenor Pakistan

Telenor has concluded the strategic review process of Pakistan. Telenor Pakistan B.V. (a privately limited company organised under the laws of the Netherlands) has signed an agreement to sell 100% of Telenor Pakistan (Private) Limited to Pakistan Telecommunications Company Ltd, the national telecommunications and ICT company in Pakistan. The buyer is a part of technology and investment group e& and have assets that include Ufone, a mobile operator in Pakistan with over 20 million customers.

The transaction values Telenor Pakistan at NOK 5.3 billion on a cash-and-debt-free basis. This includes repayment of intercompany loans of NOK 3.5 billion and reduced interest-bearing liabilities of NOK 1.8 billion including leases. The agreement is subject to regulatory approvals and other customary terms and conditions. The transaction is expected to close during 2024. Telenor Pakistan will continue its business as usual and focus on delivering services to its 45 million customers.

In the first nine months of 2023, Telenor Pakistan contributed with NOK 2.6 billion in service revenues and NOK 1.4 billion in EBITDA to the group accounts. The transaction is not estimated to have a significant impact on financials for 2023.

The transaction is in line with Telenor’s strategy in Asia, which is to build leading positions in the markets in which we operate, while de-risking and focusing on cash generation. Telenor will continue to execute on this strategy, being an active owner and build strong local digital champions to deliver innovative services to consumers, businesses, and governments in the region.