Zain signs SAR 2.5 bln agreement for infra towers sale

Mobile Telecommunications Co. Saudi Arabia (Zain) has signed an agreement with IHS Holding Limited for the sale and lease back of its passive towers infrastructure, the company said in a bourse statement.

The agreement includes sale of approximately 8,100 passive tower infrastructure and the building of an additional 1,500 (over the next 6 years) together with the lease back of such towers, for 15 years with the option to extend.

The transaction value has been raised from SAR 2.43 billion to SAR 2.52 billion.

The deal is subject to customary closing conditions including the approval of regulatory authorities, including Communications and Information Technology Commission (CITC).

The proceeds from the sale will be used to reduce debt of the Murabaha facility by SAR 2.52 billion, that will result in significant savings in the debt servicing, the company also said.