Qatar-based telecommunications company Ooredoo Group has announced that it has entered into exclusive negotiations with Mobile Telecommunications Company Zain Group and UAE-based TASC Towers Holding to combine their telecommunication tower assets in six countries. According to the statement, the joint venture aims to form the largest independent tower company in the MENA (Middle East and North Africa) Region in a cash and share deal.
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MENA's Largest Tower Company
Ooredoo stated that this partnership will bring together approximately 30,000 telecommunication towers located in Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan. Once finalized, it will become the largest tower company in the MENA region.
The primary focus of this new tower company (independent and standalone entity) will be to provide passive infrastructure services throughout the region while emphasizing operational efficiencies, synergies, and a significant reduction in carbon footprint.
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According to the statement, both Ooredoo and Zain will retain ownership of their respective active infrastructure, including wireless communication antennas, intelligent software, and intellectual property for managing their telecom networks.
By combining tower assets under the jointly owned independent tower company, the operators aim to create a more efficient capital structure, thereby unlocking potential shareholder value for both groups.
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Prioritizing Efficiency and Sustainability
As part of their growth strategies, both Ooredoo Group and Zain Group are committed to maximizing shareholder value while prioritizing efforts to reduce carbon emissions within the MENA region.
The negotiations are ongoing, and the parties expect to sign definitive agreements in the third quarter of 2023. It's important to note that Ooredoo's tower network in Oman will be following a stand-alone process, separate from this collaboration.
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The potential transaction is subject to various factors, including reaching final terms, signing definitive agreements, and obtaining all necessary corporate and regulatory approvals.
The implementation of the transaction will be carried out with a customized timeline for each market, considering the regulatory environment and ensuring a seamless transition for the operations involved.
