Zain Saudi agrees to sell, lease back telco towers for SAR 2.4 bln

Mobile Telecommunications Company Saudi Arabia’s (Zain Saudi) board of directors on Nov. 27 approved a bid submitted by IHS Holding Ltd. to sell and lease back 8,100 telecom towers for a total of SAR 2.43 billion.

The board accepted an offer to sell the towers and related passive infrastructure and lease back for 15 years with an optional five-year extension, the Kingdom’s third-largest mobile operator said in a bourse statement.

Zain Saudi will retain its intelligent software, technology and intellectual property with respect to network management.

Under the deal, the telecom operator will also build 1,500 towers over the next six years.

“The proceeds will be used to reduce the Murabaha facility by SAR 2.43 billion resulting in savings to the debt servicing, and to focus on the company’s core business and grow infrastructure with reduced investment,” Zain Saudi added.

The deal is subject to the approval of the Communications and Information Technology Commission (CITC) and the lenders.

Zain Saudi will disclose the related updates regarding material changes, if any, the statement said.

In August 2017, Zain Saudi decided to enter into negotiations with consortium led by IHS Holding ltd and Towershare Management Ltd for sale and lease back of its towers, Argaam earlier reported.