Islamabad, Mar 30, 2025: The Competition Commission of Pakistan (CCP) has given the green light to Engro Corporation for acquiring Deodar (Pvt.) Ltd., the tower arm of Pakistan Mobile Communications Limited (Jazz).
This major transaction, valued at around $563 million, is set to transform the country’s telecom infrastructure.
The acquisition will enable Jazz to transition to a more asset-light operational model while bolstering Engro’s presence in the telecommunications industry.
Jazz, a subsidiary of Veon, has been looking to offload its tower assets for some time.
Earlier negotiations with Edotco and the TPL-TASC consortium fell through.
Mounting energy costs, diminishing profit margins, and an industry-wide shift towards service-oriented operations have made it increasingly difficult for telecom firms to manage tower networks profitably.
Under the deal, Engro Enfrashare, a division of Engro Connect, will assume control of Deodar’s 10,500 towers.
This will significantly increase its portfolio, which currently comprises 4,250 towers.
The acquisition cements Engro’s status as the largest independent telecom infrastructure provider in Pakistan, pushing its market share beyond 53%.
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The company’s objective is to enhance operational efficiency by facilitating tower-sharing among multiple mobile operators, ultimately reducing costs and improving service quality.
The financial structure of the transaction involves transferring Deodar’s debt burden of $375 million to Engro, along with a fresh capital infusion of $187.7 million.
Engro plans to fund the deal using a combination of 67% debt financing and 33% equity, leveraging its substantial cash reserves and well-structured financial backing.
Unlike Jazz’s previous attempts to sell its tower assets, the company expects this deal to proceed without major regulatory setbacks.
The State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR) are unlikely to place significant restrictions, as the transaction primarily revolves around debt restructuring rather than direct capital outflows.
With CCP’s approval of the Scheme of Arrangement, Engro Connect is set to take control of Deodar (Pvt.) Ltd. from PMCL.
This strategic move not only strengthens Engro’s foothold in the telecom sector but also paves the way for a more streamlined and efficient infrastructure-sharing model in Pakistan’s evolving digital landscape.
