PTCL acquires controlling stakes

TAHIR AMIN

ISLAMABAD: Ahead of the 5G spectrum auction, Pakistan’s telecom sector has witnessed a major development, as Pakistan Telecommunication Company Limited (PTCL) has formally completed the acquisition of 100 percent of the issued share capital of Telenor Pakistan and Orion Towers from Wednesday onwards.

Hatem Bamatraf, President & Chief Executive Officer, PTCL & Ufone 4G, announced this during a media briefing, where he also hinted at positive development in the outstanding amount of around $800 million on account of the PTCL privatization. “The matter is moving positively and will be resolved soon”, said Bamatraf; however, he did not give a timeline for the resolution of the matter. He also hoped for better services after the merger and consolidation, as the move marked a major consolidation in Pakistan’s telecom sector.

From December 31, 2025, onwards, Telenor Pakistan and Orion Towers will operate as 100% owned subsidiaries of the PTCL, alongside Pak Telecom Mobile Limited (PTML), commonly known as Ufone 4G, and U Microfinance Bank. Telenor Pakistan will continue to operate as a separate legal entity during the transition period, following which PTML and Telenor Pakistan are planned to be integrated as a merged entity (MergeCo) in due course of time, subject to regulatory approvals.

The PTCL acknowledged the contribution of Telenor ASA to Pakistan’s telecom landscape. As a competitor and industry peer, Telenor played a defining role in elevating service quality and expanding connectivity over nearly two decades. This milestone brings together complementary strengths to create a platform with a stronger focus on customer centricity, broader reach, and accelerated innovation.

In the future, MergeCo will be positioned to expand network capabilities, optimize spectrum resources, and deliver seamless, secure, and digitally enabled services designed around evolving customer needs and aligned with Pakistan’s digital ambitions.

Commenting on the occasion, Hatem Bamatraf, said, “This is a proud moment for PTCL and a significant milestone for Pakistan’s telecom sector. Our focus remains on delivering customer-centric, seamless, and high-quality services for improvement in user experience as we bring combined strengths at scale upon completion of regulatory approvals.” He further added, “I warmly welcome our colleagues and want to assure them that this transition is rooted in respect for people, continuity of talent, and thoughtful integration of industry best practices. Together, we will build a stronger, future-ready organization that serves customers better, empowers its people, and advances Pakistan’s digital future.”

With this milestone, we step into a future fuelled by innovation, empowering businesses and individuals alike. This union strengthens Pakistan’s digital economy, connecting millions with superior technology and services. As we soar to new heights, our focus remains steadfast: delivering unmatched customer experiences and boosting digitalization across Pakistan.

Replying to a question, CEO PTCL said that they are waiting for the memorandum of information to be issued by PTA, before the 5G spectrum auction in the country. Once the terms and conditions and related information are released, these will be deliberated upon thoroughly.

In a notice submitted to the Pakistan Stock Exchange (PSX) on December 31, 2025, PTCL confirmed that the transaction has been finalized and the shares of both companies have been duly transferred in PTCL’s name. The disclosure was made under Rule 5.6.1 of the PSX Rule Book and Section 96 of the Securities Act, 2015. The acquisition follows a series of phased disclosures made by the PTCL between January 2023 and December 2025, keeping regulators and investors informed as the transaction progressed.

With the completion of this deal, PTCL significantly strengthens its footprint in Pakistan’s telecommunications market, gaining full control over Telenor Pakistan’s operations and Orion Towers’ infrastructure assets. PTCL stated that any further developments related to the transaction will be communicated to the PSX in line with applicable laws and regulations.

The notice was signed by Zahida Awan, Company Secretary of the PTCL, and copied to the Securities and Exchange Commission of Pakistan (SECP) and PSX’s Listed Companies Compliance department.