Ooredoo Q.P.S.C. (“Ooredoo”), trading symbol ORDO, has announced that the Group has entered into exclusive negotiations with Mobile Telecommunications Company K.S.C.P. (Zain Group) and UAE-based TASC Towers Holding to merge approximately 30,000 telecom tower assets in Qatar, Kuwait, Algeria, Tunisia, Iraq and Jordan into a standalone tower company owned with cash and equity stakes between the three parties.
This new partnership will be the largest telecom tower company in the Middle East and North Africa region. The new tower company will operate as a stand-alone entity providing passive infrastructure as a service across the region with a focus on operational efficiency, synergy and carbon footprint reduction.
Both Ooredoo and Zain will retain their active infrastructure, including wireless communications antennas, smart software and intellectual property in the management of their communications networks.
This transaction will result in a potential increase in value for shareholders of both Ooredoo Group and Zain Group through a more efficient capital structure. Both operators are committed to implementing their respective growth strategies to generate significant capital and enhance shareholder value while reducing their carbon footprint in the MENA region.
The parties will continue to conduct negotiations on an exclusive basis with the aim of signing final agreements in the third quarter of 2023, noting that Ooredoo's network of communication towers in the Sultanate of Oman follows independent procedures.
The potential transaction remains subject to final terms being agreed, final agreements signed, and all required institutional and regulatory approvals obtained, among other factors. It is expected that this transaction will be executed according to a specific timetable for each market, considering the regulatory environment and ensuring a smooth transition of operations.