PSO Plans to Acquire Telenor Pakistan and EasyPaisa

We already know that Telenor Pakistan is selling its operations in Pakistan which could be valued at about $1 billion. The company is working with Citigroup Inc. and will invite first-round bids for the business soon. Now, Pakistan State Oil (PSO), the country’s largest oil marketing firm, is planning to acquire Telenor and EasyPaisa. The company is planning to conduct due diligence on Norway’s Telenor businesses in Pakistan subject to regulatory approval.

PSO Plans to Acquire Telenor Pakistan and EasyPaisa

“The board of directors has given go-ahead to PSO management to complete the prerequisites prior to taking part in the bidding process to acquire Easypaisa and Telenor Pakistan,” a senior official said.

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Strategic buyers in the Middle East and Asia with existing operations in Pakistan are expected to show interest. A source in the Energy Ministry said the oil market firm has “completed the bidding documents and their due diligence is going on with the hope that PSO will manage to obtain 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 firm is ready to take part in the race to acquire Telenor Pakistan and Easypaisa.

Telenor Pakistan has decided to exit Pakistan amid the heavy taxation on the telecom industry and PTA’s questionable policies, which have substantially eroded revenues. Telenor has also been facing operational losses for the last three years. Dubai-based Etisalat, which holds the management of PTCL, is also showing interest to buy Telenor operations in Pakistan.

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