Qatar-based Ooredoo Group, the UAE-based TASC Towers, and the Kuwait-based Zain Group have jointly announced the signing of definitive agreements to create the largest tower company in the MENA (Middle East and North Africa) region through a cash and share deal. The joint statement notes that the new tower company comprises approximately 30,000 towers and has a combined estimated current enterprise value of USD 2.2 billion.
Also Read: Ooredoo, Zain, and TASC Towers to Create Independent Tower Company in MENA Region
Equal Ownership
Ooredoo and Zain will equally retain a stake of 49.3 percent each in the newly restructured entity through an asset and cash equalisation process. The founders of TASC will retain the remaining shareholding through Digital Infrastructure Assets and will continue to manage the operations of the business.
Largest MENA Tower Company
According to the joint statement, this deal results in the establishment of the region's largest independent Tower company, placing the MENA region on the world telecom tower map.
The transaction is also expected to unlock significant shareholder value through higher earnings multiples, as well as ensure capital efficiency, optimising balance sheets for respective companies and creating new possibilities for investors.
Combined markets of Qatar, Kuwait, Jordan, lraq, Algeria and Tunisia expected to achieve a run-rate revenue of USD 500 million annually
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Capital-Efficient and Eco-Friendly
"As an independent tower company leveraging the combined assets of Ooredoo and Zain, TASC will offer Passive Infrastructure as a Service (PIaaS) in a partnership model. This creates opportunities for all mobile network operators, offering a capital-efficient alternative to building, owning, and managing their own passive infrastructure in a cost-efficient and environmentally friendly manner," said the official release.
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Phased Implementation
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.
The expected timeline for the completion of this transaction contemplates initial market closings in 2024. The phased implementation, tailored for each market and adhering to the regulatory environment, is subject to regulatory approvals. Ooredoo said its tower network in Oman is following a stand-alone process.
