RIYADH: Zain KSA has received no-objection letters from the Communications and Information Technology Commission regarding the acquisition of tower sites by a Public Investment Fund-led consortium.
The PIF previously joined with Prince Saud bin Fahad and Sultan Holding Co. to acquire an $807 million stake in Zain KSA’s tower infrastructure, a bourse filing showed.
Saudi CITC on Sept. 7 issued no-objection voting to the agreement between the parties to take over at least 8,069 of the telecom tower sites owned by Zain KSA.
The company, formally known as Mobile Telecommunication Co., will transfer 80 percent of its share capital to the acquirers upon completion of the deal.
As per the offer with the PIF, the company will grant the sovereign wealth fund the right to buy the remaining 20 percent stake at a certain amount.
The three deals will see the telecom firm sell its towers infrastructure comprising 8,069 towers while retaining wireless communication antennas, software, technology, and intellectual property.
Zain KSA noted in the filing that the deal is subject to obtaining the required regulatory approvals, adding that any developments will be announced in due course.
This comes after the telecom operator’s profit more than doubled to SR214 million ($57 million) in the first half of 2022.
Its profit surged 157 percent from SR83 million in the same period a year earlier on the back of higher revenue.
Revenue went up from SR3.8 billion to SR4.4 billion driven by the growth in the business-to-business, fifth generation and other revenue streams in addition to a post-pandemic return of international visitors.
Speaking to Argaam, Sultan bin Abdulaziz Al-Deghaither, the CEO of Zain KSA, added that the figures were propelled by rising demand from government agencies, institutions, and companies in the Kingdom for the portfolio of business sector products and support services.
“Through global strategic partnerships, we were able to transfer the 5G experience in the Kingdom to a new level, and we sought to complete our partnerships by providing digital infrastructure that enables obtaining the best results,” he noted.