Karachi, December 6, 2024: Engro Corporation is pleased to announce a strategic partnership with Pakistan Mobile Communications Limited (“Jazz”) and its parent company VEON Group, marking a significant step forward in expanding Pakistan’s digital connectivity. This initiative aims to drive affordable, widespread access to telecommunication services, supporting national efforts to bridge the digital divide.
Through a scheme of arrangement, Jazz’s telecom infrastructure assets, housed under its wholly owned subsidiary Deodar (Private) Limited (“Deodar”), will vest into Engro Connect, a subsidiary of Engro Corporation. Engro will guarantee the repayment of Deodar’s debt of USD 375 million and provide Jazz with an additional USD 187.7 million. The transaction is subject to corporate, legal, and regulatory approvals.
Engro entered the telecommunication infrastructure sector in 2018 and provides essential infrastructure to all Mobile Network Operators (MNOs) in Pakistan. This partnership is designed to benefit the broader telecom ecosystem – by utilizing Engro’s infrastructure, MNOs will reduce capital and operational expenditures, allowing them to focus on delivering enhanced services and expanding coverage. This cost efficiency will enable operators to reach underserved areas, improving connectivity for millions of Pakistanis and supporting the nation’s digital transformation.
Hussain Dawood, Chairman of Engro Corporation, commented: “This partnership is transformative for both Engro and Pakistan’s telecommunications landscape. By expanding our tower-sharing network, we’re helping MNOs deliver essential services at reduced costs, ultimately empowering communities with better and more affordable connectivity. Our longstanding relationship with VEON’s Jazz is strengthened through this collaboration, reinforcing our shared vision of a digitally inclusive Pakistan.”
Ahsan Zafar Syed, President & CEO of Engro Corporation remarked: “Affordable and accessible digital connectivity is the foundation of a brighter, more inclusive future for Pakistan. This partnership is a step forward in empowering millions of people with opportunities to participate meaningfully in the nation’s social and economic progress.”
Kaan Terzioglu, VEON Group CEO, said: “Our collaboration with Engro Corp, starting in Pakistan, our largest market, will empower Jazz to focus on innovative digital services and cutting-edge technologies that serve Pakistan’s digital ambition. It will also help VEON showcase the wide range of opportunities for shareholder value creation and new business models across our markets.”
Engro remains committed to fostering collaborative solutions that benefit communities and drive sustainable economic growth, ensuring that everyone, regardless of location, can participate in the digital future.
