Zain KSA has approved the sale of over 8,000 tower infrastructure to the Saudi Public Investment Fund (PIF) and a consortium of investors, according to a statement issued by the telecommunications company on Wednesday.
Zain KSA is a mobile telecommunications company based in Saudi Arabia that is publicly traded on the Saudi Stock Exchange, Tadawul.
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The sale marks an 80 percent stake for the investors and has reportedly been valued at $807 million (SAR 3,026 million).
Of the investors who have own a stake, PIF will acquire 60 percent, while Prince Saud Bin Fahad and Sultan Holding Company will each receive a 10 percent stake.
The remaining 20 percent will be owned by Zain KSA, with a call option from the PIF that reserves the right for it to buy Zain KSA’s stake at an undisclosed price.
The statement from Zain KSA said: “The deal builds on PIF’s strategy to develop the Kingdom’s innovation capabilities and to position it as a globally competitive hub for technology, media, and telecom (TMT).”
Meanwhile, a statement from PIF said: “The Fund aims to enhance and develop the technology, media & telecom sector, one of PIF’s strategic sectors domestically, by localizing cutting-edge technology and knowledge in line with Saudi Vision 2030.”
The deal will also “help Zain KSA move to a capex light model and focus its investments on innovation and value-added services” said the statement, adding that “the final offers are subject to obtaining required regulatory approvals and completing other necessary conditions as agreed between PIF, the consortium and Zain KSA.”
Shares of Zain KSA have risen by 10.91 percent over the past month and recorded a 2.06 percent increase after news of the sale broke.
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