INTELLIGENT CABLING
Ooredoo , Zain , TASC Towers create largest regional 30,000 tower company
O oredoo Group , Zain Group and TASC Towers signed an agreement to create the largest tower company in the MENA region , in a cash and share deal . The enlarged tower company , comprising approximately 30,000 towers , has a combined estimated current enterprise value of US $ 2.2 billion . Ooredoo and Zain will equally retain a substantial stake of 49.3 % each in the newly restructured entity , through an asset and cash equalisation process .
The founders of TASC will retain the remaining shareholding , through Digital Infrastructure Assets LLP , and will continue to manage the operations of the business .
The tower entity is expected to achieve run-rate revenues close to US $ 500 million annually , after leases of more than US $ 200 million annually upon the completion of closings in all individual countries , including Qatar , Kuwait , Jordan , Iraq , Algeria , and Tunisia . This financial position underpins the promising prospects and profitability of the newly restructured tower company .
As an independent tower company , leveraging the combined assets of Ooredoo and Zain , TASC will offer Passive Infrastructure as a Service , PIaaS in a partnership model . This creates unprecedented opportunities for all mobile network operators , offering a capitalefficient alternative to building , owning and managing their own passive infrastructure in a cost-efficient and environmentally friendly manner .
This partnership model is well-equipped to meet the needs of other mobile network operators seeking to reduce costs , lower carbon emissions , and address the increasing demand for sites driven by double digit growth in mobile data consumption across the region .
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 . The expected timeline for the completion of this transaction contemplates initial market closings in 2024 .
The phased implementation , tailored for each market and adhering to the regulatory environment , is subject to regulatory approvals , ensuring a seamless transition of operations . Ooredoo ’ s tower network in Oman is following a standalone process .
The signing of this landmark transaction constitutes a major milestone towards realising key aspects of both Ooredoo and Zain ’ s strategies , focused on evolving into smart telcos and creating value-focused portfolio . It also reaffirms the commitment of Ooredoo , Zain and TASC to drive growth and value for shareholders .
Aziz Aluthman Fakhroo , MD and Group CEO , Ooredoo ; Bader Al-Kharafi , Zain Vice-Chairman and Group CEO ; and Iyad Mazhar , Founder and CEO of TASC said : “ This pioneering deal embarks us on an exciting journey together as it results in the establishment of the region ’ s largest independent tower company , placing the MENA region on the world telecom tower map .”
This strategic transaction will unlock significant shareholder value through higher earnings multiples , as well as ensure capital efficiency , optimising balance sheets for our respective companies and creating new possibilities for investors . The deal also demonstrates joint dedication to supporting the reduction of the region ’ s carbon footprint , contributing to reshaping the telecommunications sector by building a more sustainable ecosystem . •
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