Dhabi Group, an Abu Dhabi-based investment holding company will be exiting Pakistan’s telecom sector with a 15 percent stake sale in Pakistan Mobile Communications Limited (known as Jazz).
Upon the completion of the transaction, expected in the fourth quarter of 2020, Jazz will become the wholly-owned subsidiary of VEON.
In July 2016, Warid Telecom Pakistan, which was backed by Dhabi Group, was acquired by Jazz, and in return, Dhabi Group had received a 15 percent stake in Jazz.
Dhabi Group, as per official release from VEON, will be selling their stakes to VEON Ltd, an Amsterdam-headquartered company that’s also the parent company of Jazz.
Jazz is Pakistan’s largest mobile telecom operator, with over 63 million customers across the country. As of August 2020, Jazz has more than 37 percent of market share, according to figures shown by the Pakistan Telecommunication Authority (PTA).
Dhabi Group, a company of Sheikh Nahayan bin Mubarak Al Nahayan, has exercised its put option to sell 15 percent shareholding in Jazz to VEON. The transaction value is subject to determining an independent valuation for the fair value of the stake.