Qatar PR Network, Online Press Release from qatar and Doha city
 
Telecom & Networking(Technology)
Filter PR by
  
Ooredoo, Zain and TASC Towers Create the Largest Tower Company in the MENA Region Valued at USD 2.2 Billion
 
Ooredoo, Zain and TASC Towers Create the Largest Tower Company in the MENA Region Valued at USD 2.2 Billion
• Acquisition and merger of close to 30,000 strong tower asset expected to create significant value, capital efficiencies and empower MENA’s digital future
• Operating model will provide passive infrastructure as a service, supporting the reduction of MENA’s carbon footprint
• Transformative deal places the MENA region on the world telecom tower map
• Combined markets of Qatar, Kuwait, Jordan, lraq, Algeria and Tunisia expected to achieve a run-rate revenue of USD 500 million annually
 
Ooredoo Q.P.S.C. (“Ooredoo”) – Ticker: ORDS and Mobile Telecommunications Company K.S.P.C (“Zain Group”) -Ticker: Zain announce the signing of definitive agreements between Ooredoo Group, Zain Group and TASC Towers Holding (“TASC”) 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 USD 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 USD 500 million annually, with an EBITDAaL (after leases) of more than USD 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. 
 
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.  
 
In a joint commentary, Aziz Aluthman Fakhroo, MD and Group CEO, Ooredoo; Bader Al-Kharafi, Zain Vice-Chairman & Group CEO; and Iyad Mazhar, Founder & 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.  It also positions the region as an advanced player in the global telecoms landscape, and we anticipate wide-ranging positive implications for the region – from economic growth and upgraded connectivity to technological improvements and increased global relevance.”
 
“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 our joint dedication to supporting the reduction of the region’s carbon footprint, contributing to our vision of reshaping the telecommunications sector by building a more sustainable ecosystem and ensuring a better-connected future for our communities across the region,” the CEOs concluded.  
 
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 capital-efficient 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 stand-alone process.
 
Morgan Stanley acted as the exclusive financial advisor to the Ooredoo Group, and 
Citigroup Global Markets Ltd acted as the exclusive financial advisor to Zain Group and TASC Towers Holding on this transaction. DLA Piper acted as the legal advisors for Ooredoo, and both Herbert Smith Freehills (HSF) and Norton Rose Fulbright (NRF) jointly acted as the legal advisors of Zain Group and TASC Towers Holding. Shearman & Sterling (S&S) acted as the legal advisors of Digital Infrastructure Assets.

Posted by : Qatar and Doha City PR Network Editorial Team
Viewed 41090 times
PR Category : Technology
Posted on : Wednesday, December 6, 2023  12:25:00 PM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of QatarPRNetwork.com.
Previous Story : Ooredoo Reshapes Region's Digital Landscape with Successful ...
Next Story : The Visionary Initiative Aims to Nurture Talent and Drive Gr...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Preventing Famine and Deadly Disease Outbreaks in Gaza Requires Faster, Safer Aid access and more Su... [22245-Views]
Royal Commission for AlUla's Governor Formally Inaugurates Qatar Airways Direct Flight connecting Do... [16255-Views]
Qatar Airways Commemorates Network Expansion in Saudi Arabia with Special Ceremony in AlUla [14723-Views]
Visit Qatar Showcases “Hayyakum Qatar” in Riyadh Boulevard [14013-Views]
EASA Partners with IATA to Counter Aviation Safety threat from GNSS Spoofing and Jamming [13988-Views]
Air Cargo Demand Surges 10.8% in December, Closing 2023 Near 2022 Levels [13928-Views]
Winners Revealed for “TRT World Citizen Awards” [13796-Views]
Oman's Smart Vision Summit Gains Momentum with XS.com as Global Sponsor [12167-Views]
STATEMENT BY PRINCIPALS OF THE INTER-AGENCY STANDING COMMITTEE - CIVILIANS IN GAZA IN EXTREME PERIL ... [8785-Views]
IATA and The Weather Company Collaborate to Provide Enhanced Turbulence-Related Weather Data to Airl... [8636-Views]
2023 Safest Year for Flying By Several Parameters [5344-Views]
Emirates Post and Qatar Post sign strategic agreement to facilitate product shipping between both co... [3524-Views]
IPH Symposium on Lifestyle Medicine to take place at WCM-Q [3116-Views]
Experience Unmatched AFC Asian Cup Experiences at Mondrian Doha This Year [2416-Views]
Doha's Culinary Delight: Yotto by Cipriani Introduces Exclusive Sushi-Making Masterclass [2247-Views]
Football Fever returns to Qatar with the AFC Asian Cup and a Host of Festive Events [2238-Views]
Hamad International Airport Welcomes DHL's New Flight [2100-Views]
WCM-Q Workshop Discusses Reproductive Health and Wellbeing [2045-Views]
MATAR Completes Sixth Full-Scale Emergency Exercise at Hamad International Airport [2036-Views]
Expo 2023 Doha Unveils Exclusive Fan Zone for Asian Cup 2023 [2011-Views]
 
RSS Facebook Twitter LinkedDin QatarPRNetwork.com on Instagram
 
Top Sections
 
Top Stories