Zain Saudi Arabia has accepted an offer from IHS Holding, a mobile tower operator, for the sale and leaseback of its tower infrastructure in a deal valued at SAR2.43 billion (USD648 million).
Zain will sell 8,100 towers and related passive infrastructure located in vital and strategic areas in the kingdom and covering 98 percent of inhabited regions.
The offer is undergoing final approvals and organizations conditions of Communications and Information Technology Commission (CITC), added Zain.
Zain Chairman Prince Naif Bin Sultan said that this offer would contribute to creating a higher value for stakeholders through reducing expenses.
It will also grant flexibility in expanding investments addressing modern technologies and investment of high return in the future, he added.
Zain Executive Director Sultan Al Deghaither stated that this deal would be a strong surge for operations, permitting the company to focus on investment in basic operations and leveraging operational efficiency of the network as well as developing it according to latest standards.
Deghaither noted that this deal funds will be used to pay off debts, and this in its turn would reduce financial burdens and enhance financial lists of the company. Consequently, this step would reinforce competitiveness and the firm’s operating capabilities.
