Zain Saudi Arabia has approved the binding offer submitted by the kingdom’s Public Investment Fund (PIF) led consortium to acquire a 80 percent stake in its 8,069 passive tower infrastructure for a value of SR3 billion ($807 million).
The consortium offer will see the PIF acquiring a 60 percent stake, Sultan Holding Company acquiring 10 percent and Prince Saud bin Fahd bin Abdulaziz acquiring 10 percent.
Zain KSA will own the remaining 20 percent stake, with the PIF having a call option to buy this remaining 20 percent for a specified amount, a statement said.
It added that Zain KSA will sell its passive, physical towers infrastructure and retain all other wireless communication antennas, software, technology, and intellectual property with respect to managing its telecom network.
Zain KSA said the transaction is in line with the strategy to develop the local Information and Communication Technology (ICT) sector and localise the related technologies in the kingdom.
Bader Al Kharafi, Zain vice chairman and group CEO, and Zain KSA vice chairman, said: “This transaction creates enormous shareholder value and gives Zain KSA greater financial muscle to invest in cutting-edge technologies and innovation that enhance the customer mobile and data experience.”
Al Kharafi added: “The unlocking of capital to focus on higher yielding digital investments and optimization of infrastructure that creates internal efficiencies is a core element of Zain’s transformational ‘4Sight’ strategy, empowering Zain to enhance the meaningful connectivity we provide the communities, businesses and governments we serve.
“The proceeds of this sale will enhance the company’s financial liquidity and profitability.”
The completion of this deal in Saudi Arabia follows similar tower agreements Zain has completed in its operations in Kuwait and Jordan.
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