Pakistan Mobile Communications Limited (PMCL) and Engro Corporation Limited have merged through a Scheme of Arrangement, under which Engro will acquire PMCL’s tower assets.
The agreement stipulates that Engro will lend an additional $187.7 million (in PKR equivalent) to PMCL and guarantee Deodar’s repayment of $375 million (in PKR equivalent).
As a result of this arrangement, Engro Connect, a fully owned subsidiary of Engro, will become the legal owner of the tower assets currently held by PMCL’s wholly owned subsidiary, Deodar (Private) Limited.
Under Friday’s disclosure, Engro Corporation complied with Sections 96 and 131 of the Securities Act, 2015, and Rule 5.6.1 of the PSX’s Rule Book, as required by the PSX.
“We are pleased to inform you that Engro Corporation Limited (” the Engro “) has entered into an Amalgamation Agreement with Pakistan Mobile Communications Limited (” PMCL “) relating to a Scheme of Arrangement to be sanctioned by the Honourable High Court,” go over the message.
Engro Enfrashare’s $250 Million Asset Base and Tower Deal
The current asset base of Engro Enfrashare amounts to Rs69 billion, or $250 million, and there are 4,063 towers in the portfolio. This works out to $61,545 per tower.
By freeing up Mobile Network Operators to concentrate on providing better services, increasing coverage, and enhancing connection for their consumers, this strategic alliance will help close the digital gap, according to Engro.
It further stated that the Honourable High Court must approve the plan before it can go forward, and that approval from corporations and regulators is still pending. Engro promised the Pakistan Stock Exchange and other interested parties that it would keep them informed of any significant developments related to the agreement’s status.
