PTCL-Telenor Merger Delayed Until Second Half of 2025

ISLAMABAD: The PTCL-Telenor merger has been delayed due to pending regulatory approvals, with the transaction now expected to close in the second half of 2025, according to Telenor Group’s first-quarter report for 2025.

Telenor Group had earlier stated in February that it expected the PTCL-Telenor merger to complete in the first half of 2025. However, in its latest update, the Group said obtaining the necessary regulatory approvals for the divestment of Telenor Pakistan has taken longer than anticipated.

“We continue to engage with the authorities to obtain the approvals. Considering the strong merits of the case for all stakeholders, we still anticipate receiving the required approvals in the coming months, with the subsequent closing of the transaction in the second half of 2025,” the report added.

The sale of Telenor Pakistan to Pakistan Telecommunication Company Ltd. was first announced in December 2023. The closing of the transaction remains subject to regulatory clearances and other customary conditions.

Despite the delay, Telenor Pakistan has delivered strong operational results. Service revenue grew by 14.0%, driven by the company’s successful monetization strategy. ARPU increased by 12.5%, although the subscription base declined by 3.1%. The company benefited from lower inflation, reduced energy prices, and the reversal of a NOK 30 million provision related to personnel costs, resulting in an 18.7% rise in adjusted EBITDA.

Although some macroeconomic indicators in Pakistan have recently improved, weak economic fundamentals and ongoing political volatility continue to pose risks.

In Asia, Telenor Group’s organic service revenue growth stood at 1.3%, primarily supported by strong performance in Pakistan, which partially offset the decline in Grameenphone operations in Bangladesh.