Ooredoo said the new tower entity is expected to achieve revenues close to $500 million annually
Middle East operators Ooredoo and Zain have signed an agreement with TASC Towers Holding (TASC) with the aim of creating the largest tower company in the Middle East and Africa (MENA) region.
Ooredoo also noted that the enlarged tower company, comprising approximately 30,000 towers, has a combined estimated current enterprise value of $2.2 billion.
Under the terms of the deal, Ooredoo and Zain will equally retain a substantial stake of 49.3% each in the newly restructured entity, through an asset and cash equalization process. Meanwhile, the founders of TASC will retain the remaining shares, through Digital Infrastructure Assets and will continue to manage the operations of the business.
The new tower entity is expected to achieve revenues close to $500 million annually, with an EBITD after leases of more than $200 million annually upon the completion of closings in all individual countries, including Qatar, Kuwait, Jordan, Iraq, Algeria and Tunisia.
In a joint statement, Aziz Aluthman Fakhroo, CEO of Ooredoo, Bader Al-Kharafi, Zain’s vice chairman and 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. 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, optimizing 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 added.
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 model creates opportunities for all mobile network operators, offering a capital-efficient alternative to building, owning and managing their own passive infrastructure, the companies said.
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 companies also said that the completion of this transaction is expected for 2024.
