PTCL Share Price Jumps Over 40% in 2 Weeks on Anticipation of Telenor Merger
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
Pakistan Telecommunication Company Limited (PTCL) has seen a significant increase in its share price on the Pakistan Stock Exchange as its acquisition of Telenor Pakistan edges closer, rising from Rs. 11.91 on October 7 to Rs. 16.26 by October 25, 2024.
This means that the stock has surged over 40 percent over the period in review. On average, roughly 22 million PTCL shares have been traded during this period.
Bulls have supported the stock higher ever since the Competition Commission of Pakistan (CCP) held its first hearing for the Phase II Merger Review concerning PTCL’s acquisition of 100% shareholding in Telenor Pakistan (Private) Limited (TP) and Orion Towers (Private) Limited earlier this month.
Investors and analysts told ProPakistani that the stock is a hot commodity in the market due to the TP purchase. They expect the company to enter higher levels of liquidity and explosive growth once the acquisition is complete.
Momentum is expected to remain bullish for the coming sessions.
ProPakistani has reported earlier that CCP is officially done with all public hearings on PTCL’s acquisition, having found no issues with the deal. PTCL has emphasized the competitive benefits of the merger, particularly the expected reduction in the market share gap between the two leading telecom players in the country.
During the most recent hearing, CCP facilitated discussions, offering all stakeholders, including PTCL, Wateen, Jazz, and Telenor, the opportunity to provide their respective comments. CCP said it is committed to ensuring that any potential competitive risks arising from the merger are fully addressed, safeguarding market competition and consumer welfare.
PTCL outlined evaluation principles to mitigate input and customer foreclosure and address potential risks. The company highlighted several efficiencies expected from the merger, including cost savings, increased network capacity, accelerated technological advancements, and the rollout of 5G services. These factors are anticipated to enhance PTCL’s competitive edge and market position.
PTCL has assured the regulatory authorities that the newly formed entity, MergeCo, will fully comply with the Spectrum Sharing Framework once it is issued by the Pakistan Telecommunication Authority (PTA). This commitment underscores PTCL’s dedication to adhering to all regulatory requirements.
According to industry sources, PTCL is confident that the merger will significantly improve the country’s telecom industry by fostering competitiveness and efficiency. The company believes the deal will contribute to long-term sustainability and drive higher innovation, leading to new products and services.
The market’s positive response to the merger announcement reflects investor confidence in PTCL’s bold direction and its potential to enhance the telecom landscape in Pakistan. As the company moves forward with the merger, stakeholders are optimistic about the future growth and development opportunities it presents. That’s what AI would say. We argue that the PTCL stock will showcase bullish momentum post-TP-purchase and improve its position as one of the top picks in the market for the coming months.
Reference Link:- https://propakistani.pk/2024/10/25/ptcl-share-price-jumps-over-40-in-2-weeks-on-anticipation-of-telenor-merger/
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
