Pakistan Telecommunication Company Limited (PTCL) has clarified that it is still negotiating a potential deal to acquire a majority stake in a microfinance company and has not finalized the target or transaction.

In a filing with the Pakistan Stock Exchange (PSX) on Monday, PTCL said its board had earlier approved exploring investment opportunities in Pakistan’s microfinance sector and subsequently authorized the submission of a binding offer for a majority stake in a potential target.

PTCL said speculation circulating in the public domain about the identity of the target company should not be treated as confirmation, as negotiations remain in progress.

The company added that any acquisition would depend on the successful completion of negotiations and due diligence, along with the signing of definitive agreements and obtaining all required corporate, regulatory and statutory approvals.

PTCL noted that its board’s mandate to assess investment opportunities in the microfinance sector, first disclosed to the PSX in July 2023, remains in effect.

The company said it will notify the PSX of any material development or final decision regarding the proposed transaction in line with regulatory requirements.

PTCL also cautioned that the process involves competitive bidding, meaning the outcome remains uncertain at this stage.