Zain Group said to sell towers in Saudi, Kuwait

Kuwaiti telecoms group Zain is shortlisting potential bidders for its mobile transmitter towers in Saudi Arabia and Kuwait, Reuters reported citing unnamed sources familiar with the matter.

Zain Saudi owns 7,000 towers and a deal would help pay off some of the company’s debt, the sources said.

"Several tower companies have expressed an interest. Zain Group is assessing these to create a shortlist of serious potential buyers," one of the sources said. "Whether a deal will happen or not, it's too early to say."

According to another source, almost six potential buyers had been identified for Zain Saudi's towers, including companies from the U.S., Europe, Africa and the Middle East.

Citigroup is advising Zain Group, which is also looking to sell its 1,900 towers in Kuwait, the source said.

Zain Saudi had long-term debts of SAR 11.07 billion ($2.95 billion) at the end of 2015, mostly associated with buying its $6.1 billion license.

“A sale would help improve the company’s balance sheet,” said the first source.

If a deal is agreed, it could be signed this year, the source said, adding such transactions are complicated with thousands of assets to be valued and transferred. The deal would also require the telecom regulator’s approval.

The third biggest mobile operator in Saudi Arabia, Zain Saudi is 37 percent owned by the Zain Group.

Mobily, Saudi Arabia’s second largest mobile operator, is also trying to sell its towers and there could be first mover advantage for buyers and sellers in the kingdom.