According to the local news channel, Pakistan State Oil (PSO), the country’s main oil marketing company, is apparently performing due diligence on Telenor’s operations in Pakistan.
The action follows Telenor’s intentions to sell its Pakistani business, which might fetch as much as $1 billion; the first round of bids is anticipated to be opened up soon.
PSO Intentions To Buy Telenor Pakistan
Subject to regulatory permission, PSO intends to buy Telenor Pakistan and Easypaisa after finishing the bid documents and doing due diligence on the companies.
Easypaisa, a mobile wallet, mobile payments, and branchless banking service provider, was established in 2009 and currently has nine million active monthly customers.
It was initially introduced as a USSD (Unstructured Supplementary Service Data)-based money transfer service.
The Easypaisa mobile app, which was introduced in 2016, makes it possible to conduct a variety of financial activities in addition to money transfers.
Easypaisa is Telenor Microfinance Bank’s branchless banking service. Telenor Microfinance Bank and Telenor Group jointly own it. A debit card from Easypaisa was introduced on January 17, 2023.
Due to the country’s high telecom taxes and the Pakistani Telecommunication Authority’s (PTA) policies, which have severely reduced earnings, Telenor Pakistan has chosen to leave the country.
The past three years have seen operational losses for the corporation. There is no guarantee that discussions on a prospective sale of Telenor’s Pakistani operations would culminate in a transaction, according to industry officials.
As part of its efforts to diversify its business beyond the conventional oil and gas industry, PSO is interested in purchasing Telenor’s operations in Pakistan.
The action might also assist PSO in diversifying its sources of income and gaining access to Pakistan’s expanding digital payments market.
To read our blog on “PTCL is ready to buy Telenor Pakistan in $1.2 bn,” click here.