Engro commits $375m debt guarantee, $187.7m funding in in PMCL Deal – Mettis Global Link

December 06, 2024 (MLN): Engro Corporation Limited (PSX: ENGRO) has committed to guaranteeing the repayment of $375 million in Deodar’s debt and providing an additional $187.7m to Pakistan Mobile Communications Limited (PMCL) under a new Amalgamation Agreement, according to the statement release by the company today. 

The deal, which is subject to approval by the Honorable High Court, involves the transfer of PMCL’s tower assets from its wholly owned subsidiary, Deodar (Private) Limited, to Engro Connect, a fully owned subsidiary of Engro. This move aims to enhance Pakistan’s digital infrastructure and connectivity.

This initiative aims to drive affordable, widespread access to telecommunication services, supporting national efforts to bridge the digital divide. 

Through a scheme of arrangement, Jazz’s telecom infrastructure assets, housed under its wholly owned subsidiary Deodar (Private) Limited (“Deodar”), will vest into Engro Connect, a subsidiary of Engro Corporation.

Engro entered the telecommunication infrastructure sector in 2018 and provides essential infrastructure to all Mobile Network Operators (MNOs) in Pakistan.

This partnership is designed to benefit the broader telecom ecosystem – by utilizing Engro’s infrastructure, MNOs will reduce capital and operational expenditures, allowing them to focus on delivering enhanced services and expanding coverage.

This cost efficiency will enable operators to reach underserved areas, improving connectivity for millions of Pakistanis and supporting the nation’s digital transformation.

Hussain Dawood, Chairman of Engro Corporation is of the view that this partnership is transformative for both Engro and Pakistan’s telecommunications landscape.

“By expanding our tower-sharing network, we’re helping MNOs deliver essential services at reduced costs, ultimately empowering communities with better and more affordable connectivity,” he added.

“Our longstanding relationship with VEON’s Jazz is strengthened through this collaboration, reinforcing our shared vision of a digitally inclusive Pakistan,” he said. 

Ahsan Zafar Syed, President & CEO of Engro Corporation stated that affordable and accessible digital connectivity is the foundation of a brighter, more inclusive future for Pakistan.

This partnership is a step forward in empowering millions of people with opportunities to participate meaningfully in the nation’s social and economic progress, he noted. 

Kaan Terzioglu, VEON Group CEO, said: “Our collaboration with Engro Corp, starting in Pakistan, our largest market, will empower Jazz to focus on innovative digital services and cutting-edge technologies that serve Pakistan’s digital ambition.”

It will also help VEON showcase the wide range of opportunities for shareholder value creation and new business models across our markets.

Engro remains committed to fostering collaborative solutions that benefit communities and drive sustainable economic growth, ensuring that everyone, regardless of location, can participate in the digital future. 

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Posted on: 2024-12-06T10:00:56+05:00