Telenor ASA completes exit from Pakistan, refocusing on core markets
Telenor ASA’s divestment of its Pakistani subsidiary has closed after a series of regulatory approvals and a final settlement with the government. The sale, which concluded on 31 December 2025, marks the end of the company’s foray into one of its largest non‑Nordic markets and underscores a strategic shift toward consolidating operations in the Nordic, Central and Eastern European, and Asian regions where the group continues to invest heavily.
Transaction highlights
- Valuation: The sale price was not disclosed in full, but analysts estimate the transaction value to be in the vicinity of NOK 5 billion, a figure that aligns with the company’s previous market‑cap‑based valuation of its Pakistani operations.
- Parties: The buyer is a consortium led by the Special Investment Facilitation Council, which includes major local players such as Engro and Etisalat. The consortium secured NOK 1 58 billion to acquire Telenor Pakistan’s shares, reflecting a premium over the last trading price.
- Regulatory clearance: The transaction received swift approval from Pakistani regulatory authorities, a testament to the government’s commitment to attracting foreign investment and improving the country’s telecommunications infrastructure.
Impact on Telenor’s financial profile
| Metric | Pre‑sale | Post‑sale |
|---|---|---|
| Revenue (2025) | NOK 12.8 bn (incl. Pakistan) | NOK 10.4 bn |
| EBITDA | NOK 4.6 bn | NOK 3.7 bn |
| Net debt | NOK 2.1 bn | NOK 1.9 bn |
| P/E ratio | 19.8 | 20.3 |
The divestment slightly improves the company’s leverage profile and lifts its price‑earnings ratio marginally, as the loss of Pakistani revenue is offset by a reduction in debt and a lower capital‑expenditure requirement.
Strategic implications
Capital reallocation The proceeds from the sale are earmarked for strengthening Telenor’s core operations, particularly in the Nordic region where the company remains a dominant fixed‑telephony and broadband provider. The group plans to invest in 5G roll‑outs and digital service bundles that cater to the growing demand for high‑speed, low‑latency connectivity.
Operational focus With Pakistan removed from its portfolio, Telenor can streamline its management structure, reducing the complexity of overseeing operations across 13 distinct markets. This simplification is expected to enhance operational efficiency and accelerate decision‑making in the high‑growth segments of its business.
Risk profile Pakistan’s regulatory environment has historically been characterized by political instability and frequent spectrum reforms. By exiting the market, Telenor reduces exposure to political risk and the potential for abrupt policy shifts that could disrupt revenue streams.
Investor sentiment The company’s share price, which closed at NOK 146.7 on 29 December 2025, reflects a modest uptick following the announcement. Analysts suggest that the market views the exit as a prudent move that will enhance the company’s focus on profitable markets and improve its return‑on‑equity.
Forward‑looking view
Telenor ASA is positioned to capitalize on the continued expansion of digital services in its remaining markets. The company’s 2026 guidance indicates a 7.5 % revenue growth, driven primarily by the rollout of 5G in the Nordic region and the expansion of cloud‑based offerings in Eastern Europe. The firm’s commitment to maintaining a strong balance sheet, coupled with a disciplined capital allocation strategy, signals resilience amid a competitive global telecom landscape.
As the telecommunications sector continues to evolve, Telenor’s strategic divestment from Pakistan will likely be viewed as a decisive step toward consolidating its market leadership where it can deliver the highest returns to shareholders.
