KARACHI: Veon, the largest wireless operator in Pakistan, has accepted an offer for the sale of its telecom towers in the South Asian country by a consortium comprising UAE-based TASC Towers Holding Limited and Pakistan’s TPL REIT Management Company, officials said. 

The TPL REIT Management Company (RMC), along with UAE-based mobile telecom tower operator TASC Towers, submitted a bid in November for the acquisition of the Telecom Tower Infrastructure Company, which owns and manages around 10,500 operating towers in Pakistan.

“Parent of one of the largest Telecom Tower operators in Pakistan, has conditionally accepted the offer... for acquisition of their subsidiary (Telecom Tower Infrastructure Company) which owns and manages more than 10,500 telecom towers in Pakistan,” the TPL said in a stock filing on Tuesday. 

If it materializes, the sale of towers would be Pakistan’s largest deal since 2011, valued at around $600 million, according to Bloomberg. 

Veon on Monday said it was in transition toward an “asset-light model” for its business and the discussions for the Pakistan sellout were still ongoing. 

“In line with its strategy, Veon and its operating companies are in transition toward an asset-light model for its businesses and the company has previously indicated its interest in selling its towers business in Pakistan,” a Veon spokesman said in a written reply to an Arab News query. 

“The discussions are still ongoing and at this time, there is no further update that Veon can make on this process.”

In December 2021, Veon announced the successful conclusion of the sale of its Russian tower assets to Service-Telecom for $957 million. The company sold 15,000 towers in Russia, while it still holds around 30,000 towers in various countries, including Pakistan, Bangladesh, Uzbekistan. 

Veon had successfully concluded in March 2021 the acquisition of 15 percent minority stake in the Pakistan Mobile Communications Limited (PMCL), the operating company of Pakistani mobile operator Jazz, from the Dhabi Group for $273 million. 

With 38.55 percent market share in Pakistan, the PMCL has become the largest mobile phone operator in the country, followed by Telenor that holds 25.2 percent market share, according to the Pakistan Telecommunication Authority (PTA). 

Veon, however, has categorically denied considering the sale of other assets apart from its tower business in Pakistan. 

“No other Veon business in Pakistan has been referenced in relation to the sale, and the purpose of the sale (of towers) is to pursue the asset-light business model that the company has set out previously,” the Veon spokesman told Arab News.

In September, TPL, a Pakistani company that operates diversified businesses including GPS tracking and real estate management, announced forging a strategic partnership with TASC Towers for the acquisition of the telecom tower company.

Founded in 2017, TASC Towers Holding Limited owns, builds and operates mobile telecom towers in four countries, including in the UAE. The company has deployed or managed over 15,000 towers.

In the largest such fund-raising in Pakistan, TPL RMC is planning to raise $500 million through an investment trust, expecting 60 percent funds from foreign investors. 

The company operates as TPL Investment Management in the Abu Dhabi Global Market.