New regional tower company coming to North Africa
A plan is underway to launch a new independent cellphone tower company, with assets in the Middle East and North Africa (MENA) region.
Telecom providers, Ooredoo Group and Zain Group, announced yesterday, that they have they entered exclusive negotiations with UAE-based TASC Towers Holding to combine tower assets across the region.
Specifically, this will give the new, jointly-owned independent company approximately 30,000 assets in Algeria, Tunisia, Qatar, Kuwait, Iraq and Jordan.
In a joint statement, Ooredoo and Zain said the partnership will form the largest tower company in the MENA region.
Zain has a commercial footprint in seven Middle Eastern and African countries, with a workforce of 7,400, providing mobile voice and data services to over 53 million active individual and business customers, as of March 31, 2023.
While, Ooredoo serves 10 countries across the Middle East, North Africa, and Southeast Asia.
“The enlarged tower company will continue to operate as an independent and standalone entity, providing passive infrastructure-as-a-service throughout the region with a focus on operational efficiencies, synergies and reduction of carbon footprint,” says an official statement.
Both Ooredoo and Zain will retain their respective active infrastructure, including wireless communication antennas, software, and intellectual property concerning managing their telecom networks.
The statement continued: “This transaction will create a potential shareholder value uplift for both Ooredoo Group and Zain Group, through a more efficient capital structure. Both operators are committed to executing their respective growth strategies to unlock significant capital and maximise shareholder value, while reducing the carbon footprint within the MENA region.”
The parties will proceed with negotiations exclusively to sign definitive agreements in the third quarter of 2023.
The companies said: “The potential transaction remains subject to, among other factors, agreement on final terms, signing of definitive agreements and obtaining all required corporate and regulatory approvals.
"The implementation of this transaction is expected to be executed in a customised timeline for each market, considering the regulatory environment and ensuring a smooth transition for the operations.”