Mubasher: National Mobile Telecommunications Company (Ooredoo) has entered exclusive negotiations with Mobile Telecommunications Company (Zain Group) and UAE-based TASC Towers Holding to establish the largest tower firm in the MENA region.
The three entities will combine nearly 30,000 telecommunication tower assets in Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan into a jointly owned independent tower company in a cash and share deal, according to a press release.
The independent operating model will enhance shareholder value as well as the operational and carbon efficiency of passive tower infrastructure, which in turn will back the reduction of MENA’s carbon footprint
Ooredoo and Zain will keep their respective active infrastructure, including wireless communication antennas, intelligent software, and intellectual property with respect to managing their telecom networks.
This transaction will create a potential shareholder value uplift for both Ooredoo and Zain through a more efficient capital structure, as they are committed to maximising value for shareholders while reducing the carbon footprint across the MENA region.
Meanwhile, the parties will proceed with negotiations on an exclusive basis with a view to signing definitive agreements during the third quarter (Q3) of 2023.
The potential transaction is still subject to obtaining all required corporate as well as regulatory approvals.
In Q1-23, the net profits attributable to the owners of Ooredoo hiked by 43% to QAR 961 million from QAR 671 million.
