Zain KSA signs deal to sell 8,069 towers at SAR 3.03 bln, expects SAR 1.1 bln gain in 18 months

16/10/2022 Argaam
Logo ofMobile Telecommunication Company Saudi Arabia (

Logo of Mobile Telecommunication Company Saudi Arabia (Zain KSA)


Mobile Telecommunication Company Saudi Arabia (Zain KSA) announced the transfer of ownership of one of its subsidiaries, Zain Business Ltd., to the Public Investment Fund (PIF) at a nominal value of SAR 10,000.

 

Subsequently, the PIF changed the company's name to The Golden Lattice Investment Co. (GLI).

 

Moreover, Zain KSA signed with GLI an asset purchase agreement, through which ownership of at least 8,069 towers will be transferred to GLI at a total value of SAR 3.026 billion, the telecom company said in a statement on Tadawul.

 

Under the agreement, Zain KSA will receive SAR 2.421 billion in addition to 20% ownership stake in GLI, upon financial completion.

 

The Saudi-listed telecom company also signed a shareholders’ agreement with the PIF, Prince Saud bin Fahd bin Abdulaziz, Sultan Holding Co., and GLI, regarding GLI.

 

The shareholding structure of GLI, upon completion, will be PIF – 60%; Zain KSA – 20%; Prince Saud bin Fahad – 10% and Sultan Holding Co. – 10%.

 

The financial completion under the agreement will be achieved when the required licenses are obtained, and Zain KSA transfers at least 3,000 sites out of the 8,069 to GLI.

 

Following this, the financial completion date will be triggered and the asset purchase and shareholders’ agreements will become effective.

 

According to the asset purchase agreement, the transfer of the sites will be in batches, with at least 8,069 sites transferred within a period not exceeding 18 months from the financial completion.

 

The transaction will result in a gain of up to SAR 1.1 billion from the transfer of 8,069 towers over the following 18 months to the financial closing, the statement added, indicating that Zain KSA will work with all the parties to complete the remaining phases of the transaction.

 

Meanwhile, Zain KSA clarified that the decision to approve the final offers by the board of directors was unanimous, after excluding the following related parties in this transaction, Zain KSA Chairman Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer as he is also the Chairman of Sultan Holding Co.

 

In addition, Zain board member Saud Al-Bawardi who works for United Co., where Prince Saud bin Fahd bin Abdulaziz has an interest.

 

Any substantial developments will be announced in due course, the company noted.

 

For More Mergers and Acquisitions

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.