Zain KSA says consortium with Mobily to buy telecom towers dissolved on failure to reach agreement

Zain KSA office

Mobile Telecommunication Company Saudi Arabia (Zain KSA) announced that it had not reached an agreement regarding the consortium formed to acquire the telecom towers, together owned by Etihad Etisalat Co. (Mobily).

The company said in a bourse filing that the previously announced consortium will be dissolved.

Zain KSA will continue to explore the best strategic options to achieve the interest for the company and its shareholders.

In July 2020, Mobily and Zain KSA signed a non-binding memorandum of understanding (MoU) to form a joint committee, invite offers for telecom towers, and mull the options of purchasing the towers owned by the two telcos and merging these towers into one company with other investors or operating them on their behalf. 

In March 2021, Mobily and Zain KSA received a letter from CITC board, giving its in-principle approval on the joint application from Zain KSA, Mobily, Raidah Investment Co. (RIC), and IHS to merge and unify these towers under Towers Co. 

According to data compiled by Argaam, Mobily said last July that the joint application from Zain KSA, RIC and IHS KSA Ltd. (IHS) to acquire the telecom towers owned by Zain KSA and Mobily, and merge them under a single entity, do not align with its strategy and objectives of achieving financial and operational efficiency. 

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