Saudi Mobile Telecommunications Company, Zain Saudi Arabia, has agreed to non-binding offers from the Public Investment Fund, Prince Saud bin Fahd bin Abdulaziz, and Sultan Holding Company, to acquire stakes in the infrastructure of Zain Saudi Arabia’s towers, at rates of 60%, 10% and 10% straight.
According to Arabiya Net, Zain Saudi Arabia will retain ownership of the remaining 20% stake. The bids estimated the value of the infrastructure (consisting of 8,069 towers) at 3.026 billion Saudi riyals ($807 million), according to a company statement on the Saudi market website Tadawul.
Bloomberg Agency reported that the Public Investment Fund's bid to buy a controlling stake in the mobile phone tower unit of the second largest telecommunications company in the Kingdom, worth $484 million.
Under the terms of the offers, Zain Saudi Arabia will sell only the tower structure, while retaining ownership of all other components of the wireless communications antennas, software, technology and intellectual property.
Zain Saudi Arabia stated that it will work with all parties to determine the best way to complete the acquisitions, bearing in mind that the submitted offers are not binding, and that the final agreements are subject to the approval of official authorities, and internal approvals. To all parties, and to complete due diligence checks, and any other conditions agreed upon between the parties.
Any major developments will be announced in this regard.
On the other hand, Zain Saudi Arabia announced in a separate statement, today, Tuesday, that it had not reached an agreement regarding the formation of an alliance to acquire the communications towers owned by both Mobily companies. And Zain Saudi Arabia has merged and unified these towers under a commercial entity registered in the Kingdom of Saudi Arabia under the name Al-Abraj Company, thus dissolving the previously announced alliance, while Zain Saudi Arabia continues to search for the best strategic options to achieve the interest of the company and its shareholders.
