Wednesday 16 February 2022
Zain KSA approves 80% stake sale of its tower infrastructure to consortium of investors
Zain KSA’s Board of Directors has approved the final offers (the “Final Offers”) submitted by the Public Investment Fund (“PIF”), HRH Prince Saud Bin Fahad, and Sultan Holding Company to acquire 80% of Zain KSA’s tower infrastructure comprising of 8,069 towers (the Tower Infrastructure), valuing these assets at SAR 3,026 million (USD 807 million).
The Final Offers come after Zain KSA’s Board of Directors received an initial offer submitted by PIF and the investors. Pursuant to the Final Offers, PIF, HRH Prince Saud Bin Fahad, and Sultan Holding Company will acquire 60%, 10%, and 10% stakes in the tower infrastructure, respectively, while Zain KSA will own the remaining 20% stake. PIF’s final offer also includes a call option that will grant PIF the right to buy the remaining 20% stake from Zain KSA for a certain amount.
The deal builds on PIF’s strategy to develop the Kingdom’s innovation capabilities and to position it as a globally competitive hub for technology, media, and telecom (TMT) . As one of PIF’s strategic sectors domestically, the Fund aims to enhance and develop the technology, telecom & media sector by localizing cutting-edge technology and knowledge in line with the Vision 2030 objectives. The transaction will enhance the efforts to maximize efficiency of the tower infrastructure in the Kingdom, thereby boosting its financial sustainability.
The deal will also help Zain KSA move to a capex light model and focus its investments on innovation and value-added services that enhance user experience. The Final Offers are subject to obtaining required regulatory approvals and completing other necessary conditions as agreed between PIF, the consortium and Zain KSA.