The Competition Commission of Pakistan (CCP) has approved Engro Corporation’s acquisition of Deodar (Pvt.) Ltd., the tower subsidiary of Pakistan Mobile Communications Limited (Jazz), in a deal valued at approximately $563 million. This transaction is set to reshape the telecom infrastructure landscape, enabling Jazz to transition to an asset-light business model while strengthening Engro’s position in the telecom sector.
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Jazz, owned by Veon, has been seeking to divest its tower infrastructure for some time, previously attempting deals with Edotco and the TPL-TASC consortium. Rising energy costs, shrinking profit margins, and the industry’s shift toward a service-centric model have made telecom tower management increasingly unfeasible for mobile operators.
Engro Enfrashare, a subsidiary of Engro Connect, will take over Deodar’s 10,500 towers, significantly expanding its existing portfolio of 4,250 towers. This move will establish Engro as the largest independent telecom infrastructure provider in Pakistan, with a market share exceeding 53% post-transaction. The company aims to optimize tower sharing among multiple network operators, improving cost efficiency and service quality.
The transaction includes the transfer of Deodar’s $375 million debt liability to Engro, along with an additional $187.7 million in fresh capital investment. Engro plans to finance the deal through a combination of 67% debt and 33% equity, leveraging its strong cash reserves and financing arrangements.
Unlike Jazz’s previous failed tower sales, this transaction is not expected to face significant regulatory hurdles. The State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR) are unlikely to impose major restrictions, as most of the deal involves debt transfer rather than direct capital outflows.
With CCP’s approval of the Scheme of Arrangement between the three companies, Engro Connect will now acquire control of Deodar (Pvt.) Ltd. from PMCL, marking a major milestone in Pakistan’s evolving telecom infrastructure sector.
