Saudi Arabia’s Zain Group has approved the sale of its 8,069 tower infrastructure for SAR 3 billion ($807 million) to a consortium led by PIF, the kingdom’s largest sovereign wealth fund.
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.
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.
Bader Al Kharafi, Zain Vice Chairman and Group CEO, and Zain KSA Vice-Chairman, commented, “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. We congratulate the Kingdom’s leadership, the PIF and regulatory authorities for their wisdom in creating an environment that raises the telecom sector to new heights in line with Saudi Vision 2030.”
The completion of this transaction in Saudi Arabia, follows similar pioneering tower deals Zain has completed in its operations in Kuwait and Jordan.