We already know that Telenor Pakistan is selling its business in Pakistan, worth about $1 billion. The company is partnered with Citigroup Inc. and will soon make first round bids for the company. Now Pakistan State Oil (PSO), the country’s largest oil marketing company, plans to acquire Telenor and EasyPaisa. The company intends to conduct a due diligence investigation into the Norwegian Telenor business in Pakistan, subject to regulatory approval.
PSO plans to acquire Telenor Pakistan and EasyPaisa
“The Board of Directors has given the green light to PSO’s management to fulfill the conditions before entering the bidding process to acquire Easypaisa and Telenor Pakistan,” said a senior official.
Also check: PTCL Group Shows Strong Interest in Acquiring Telenor Pakistan: source
Strategic buyers in the Middle East and Asia with existing operations in Pakistan are expected to show interest. A source at the Department of Energy said the oil market company has “completed the bidding documents and their due diligence is ongoing in the hope that PSO will succeed in acquiring the stakes in Easypaisa and Telenor”.
PSO declined to comment. However, one of the directors of the PSO board representing the government of Pakistan confirmed that the state-owned company is ready to join the race to take over Telenor Pakistan and Easypaisa.
Telenor Pakistan has decided to leave Pakistan amid heavy taxes on the telecom industry and PTA’s questionable policies, which have significantly eroded revenues. Telenor has also suffered operational losses over the past three years. Dubai-based Etisalat, which controls PTCL’s management, is also expressing interest in acquiring Telenor’s operations in Pakistan.
Also see: Telenor Pakistan continues to expand insurance plans for its franchise personnel