In a restructuring move PTCL to merge Ufone, change CEO

September 18, 2020

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Sources have confirmed that PTCL Sponsors are considering to merge Ufone into PTCL and remove current CEO as Ufone bears exensive losses

It has been learnt from credible sources that Etisalat Group, the sponsor of PTCL is considering to restructure PTCL in a bid to revive the Telecom giant. Sources have confirmed that Etisalat is particularly not happy with financial performance of Ufone.

Etisalat is looking for a new CEO for PTCL, while an international head-hunting firm has also been contacted for the same. There are also reports that some one from Pakistan may also be appointed as new head of the company.

Government of Pakistan is the majority shareholder in PTCL. However, Etisalat has management control over the company. Previosly, there were talks of Ufone’s mereger with any of the other three mobile telecom companies i.e:Jazz, Zong, Telenor. However, government has strongly resented such proposal and instead floated the idea of merger of Ufone into PTCL.

Financial performance of Ufone has remained relatively subdued in recent times, partly due to limited Revenue growth and partly due to excessive financial charges it has to incur owing to its Foreign currency loans.