Riyadh – Mubasher: Mobile Telecommunication Company Saudi Arabia (Zain) on Wednesday announced that its board of Saudi Zain has agreed upon an offer to sell and lease back the passive physical infrastructure of its mobile tower portfolio to IHS Holding Limited (IHS), the largest independent tower operator in Europe, Middle East and Africa (EMEA).
The transaction’s total cost amounted to SAR 2.43 billion ($648 million).
“The sale of Zain KSA’s impressive tower network is a highly positive move, as it creates shareholder value by helping the company reduce its debt position, as the proceeds will be used to reduce the company’s Murabaha facility,” Bader Al Kharafi, Zain vice-chairman and Group CEO, said.
The deal will help the company in debt payment and decrease financing burdens, in addition to adding operational capabilities.
The offer will also help the telecom company to be more flexible to meet its users’ expectations.
“Zain KSA has implemented a transformation programme in the Kingdom for some time now, advancing its efforts to become a digital lifestyle provider. The deal unlocks capital and resources, allowing the operator to focus on its core operations and further invest in and deliver the latest ICT technologies to meet the ever-increasing demand for reliable broadband access and data consumption,” Al Kharafi added.
He noted that the sale process will provide Saudi Zain additional impetus to focus on the delivery of more data monetisation initiatives and customer enhancing services to offer customers the best data experience in the Kingdom.
