Comprising 30,000 telecom towers across six countries
Qatar-based Ooredoo Group, Kuwait-based Zain Group, and UAE-based TASC Towers Holding have teamed up to create the largest tower company in the Middle East and North Africa (MENA) region. The joint venture will Comprise approximately 30,000 telecom towers across six countries.
After exclusive negotiations, the three telecom operators, Ooredoo Group, Zain Group, and TASC Towers Holding decided to combine their tower assets in Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan into a jointly owned independent tower company in a cash and share deal worth $2.2 billion.
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The new entity, which will be the largest tower company in the MENA region, will operate as an independent and standalone provider of passive infrastructure as a service, with a focus on operational efficiencies, synergies, and reduction of carbon footprint.
Both Ooredoo and Zain will retain their respective active infrastructure, including wireless communication antennas, intelligent software, and intellectual property concerning managing their telecom networks.
The transaction will increase the shareholder value for Ooredoo Group and Zain Group through a more efficient capital structure. Both operators are committed to executing their respective growth strategies to unlock significant capital and maximize value for shareholders, while at the same time, reducing the carbon footprint within the MENA region.
The parties will proceed with negotiations on an exclusive basis to sign definitive agreements. The potential transaction remains subject to, amongst other factors, agreement on final terms, signing of definitive agreements, and obtaining all required corporate and regulatory approvals.
The implementation of this transaction is expected to be executed in a customized timeline for each market considering the regulatory environment and ensuring a smooth transition for the operations.
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Ooredoo serves consumers and businesses in ten countries, while Zain operates in seven countries across the Middle East and Africa and provides services to over 53 million active customers. TASC Towers Holding is the largest independent tower company that builds, owns, and operates passive digital infrastructure including towers, rooftop sites, and DC equipment.
“This pioneering deal embarks us on an exciting journey together as it results in the establishment of the region’s largest independent Tower company, placing the MENA region on the world telecom tower map, It also positions the region as an advanced player in the global telecoms landscape, and we anticipate wide-ranging positive implications for the region – from economic growth and upgraded connectivity to technological improvements and increased global relevance” said Aziz Aluthman Fakhroo, MD and group CEO, Ooredoo; Bader Al-Kharafi, Zain vice-chairman & group CEO; and Iyad Mazhar, founder & CEO of TASC.
The transaction is expected to be finalized by next year, subject to regulatory approval.
