Ooredoo, Zain and TASC in talks to create MENA’s largest tower company

Telco operators Ooredoo Group, Zain Group and TASC Towers are in talks to combine their approximately 30,000 telecommunication tower assets into a jointly owned independent tower company. The partnership will combine all three companies’ tower assets in Qatar, Kuwait, Algeria, Tunisia, Iraq and Jordan to form the largest tower company in the MENA region.

The enlarged tower company will continue to operate as an independent and standalone entity providing passive infrastructure as a service throughout the region with a focus on operational efficiencies, synergies and reduction of carbon footprint.

Both Ooredoo and Zain will retain their respective active infrastructure, including wireless communication antennas, intelligent software, and intellectual property with respect to managing their telecom networks.

In a statement Ooredoo said, “This transaction will create a potential shareholder value uplift for both Ooredoo Group and Zain Group through a more efficient capital structure. Both operators are committed to executing on their respective growth strategies to unlock significant capital and maximize value for shareholders while at the same time reducing the carbon footprint within the MENA region.”.

The companies said the transaction remains subject to, amongst other factors, agreement on final terms, signing of definitive agreements and obtaining of all required corporate and regulatory approvals, with Ooredoo’s tower network in Oman is to follow a stand-alone process.

Exclusive negotiations amongst the three parties will proceed, with the cash and share deal expected to be signed in Q3 2023 if all goes ahead.

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