Pakistan Telecommunication Company Limited (PSX: PTC) has supported the growth in its stock price seen last month and attributed it to investors’ reaction towards the company buying Telenor Pakistan (Pvt) Limited.
PTCL recalled that the average market price of PTCL shares from March 01 to March 13, 2024, stood at PKR 12.31, while during the period from March 14 to March 31, 2024, it increased to PKR 15.74.
Pursuant to the provisions of rule 5.6.1 of the PSX Rule Book and Section 96 of the Securities Act 2015, the Company disseminated the price-sensitive information on December 14, 2023.
It was notified at the time that the company had entered into a Share Purchase Agreement with the shareholders of Telenor Pakistan (Private) Limited for the acquisition of 100 percent shares based on an Enterprise Value of Rs. 108 billion on a cash-free, debt-free basis.
The Transaction will be financed by external debt that will be raised by the Company.
‘We believe that the investors reacted favorably to the disclosed
information, as evidenced by the PSX record. Following the dissemination of the price-sensitive details, the market price of PTCL shares rose to Rs. 13.54 by the close of March 14, 2024, compared to the previous day’s closing price of Rs. 12.59 on March 13, 2024. Subsequently, the value of PTCL shares continued to rise, reaching Rs. 18.27 by the close of March 29, 2024, the final working day of the month,’ PTCL noted.
The company further said, ‘It is evident that the upward trend in PTCL’s share price was driven by the Company’s announcement on March 14, 2024, regarding its acquisition of TPL. Moreover, we feel that the PSX market is presently showing upward trajectory due to positive economic fronts’.
Source: Pro Pakistani