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Zain KSA Signs Tower Sale Deal With New Price

Zain Saudi Arabia (Zain KSA) has signed the deal to sell and lease back the passive physical infrastructure of its mobile tower portfolio to IHS Holding (IHS) for SAR 2.52 billion. Under the terms of the agreement, Zain KSA is selling only its passive, physical infrastructure to IHS and will retain its intelligent software, technology and intellectual property for managing its network.

The signing came after Zain KSA announced on 27 November 2018 that the board had approved the offer from IHS Holding to sell and lease back its passive towers. The original transaction valuation of SAR 2.43 billion has been revised to SAR 2.52 billion.

Zain KSA has more than 8,100 mobile telecommunication towers located in strategic locations across Saudi Arabia. The agreement will see the sale of the towers with a lease period of fifteen years, with a five-year renewal option. The deal includes the building of an additional 1,500 new towers over the next six years.

Sales proceeds will be used to reduce Murabaha financing, thus reducing funding burdens, and allowing the Zain KSA team to invest and focus on the delivery of more data monetization initiatives and customer enhancing services, the company said. The final agreement between Zain KSA and IHS is subject to the approval of the Communications and Information Technology Commission and financing authorities.―Telecompaper

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