ISLAMABAD: Telenor ASA is pushing ahead with plans to sell its operations in Pakistan, which could be valued at about $1 billion, Bloomberg reported this week, saying interest was expected from buyers in the Middle East and Asia.
The Norwegian telecommunications operator is working with Citigroup Inc. and will invite first round bids for the business later this month.
Telenor said in July that it would conduct a strategic review of its Pakistan unit after posting a 2.5 billion-krone ($244 million) impairment on operations in the emerging economy.
“Strategic buyers in the Middle East and Asia with existing operations in Pakistan are expected to show interest, according to the people,” Bloomberg said. “Deliberations are ongoing and there’s no certainty they’ll result in a transaction.”
Representatives for Citigroup and Telenor declined to comment.
Shares in Telenor rose as much as 2.4 percent on Wednesday. The stock was up 1.8 percent at 14:02 p.m. in Oslo, giving the company a market value of $13 billion.
In October, Telenor said underlying earnings in Pakistan fell 22 percent in the third quarter, in part because of rising energy prices in the country. The impact of this was offset by a gain from the reversal of a SIM tax in Pakistan.