Ooredoo Group has entered into an exclusive negotiation with Mobile Telecommunications Company (Zain Group) and the UAE-based TASC Towers Holding in order to establish the largest tower firm in the MENA region.
The company said in a statement that they will combine nearly 30,000 telecommunication tower assets in Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan into a jointly owned independent tower company in a cash and share deal.
“The enlarged tower company will continue to operate as an independent and standalone entity providing passive infrastructure as a service throughout the region with a focus on operational efficiencies, synergies, and reduction of carbon footprint,” according to the statement.
Both Ooredoo and Zain will retain their respective active infrastructure, including wireless communication antennas, intelligent software, and intellectual property with respect to managing their telecom networks.
This transaction will create a potential shareholder value uplift for both Ooredoo Group and Zain Group through a more efficient capital structure. Both operators are committed to executing on 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 company noted.
The parties will proceed with negotiations on an exclusive basis with a view to signing definitive agreements in the third quarter of 2023.
As per the statement, “The potential transaction remains subject to, amongst other factors, agreement on final terms, signing of definitive agreements and obtaining of all required corporate and regulatory approvals.”
The company further added that 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.
