Zain Saudi agrees to sell, lease back 8,100 towers to IHS for USD648m

29 Nov 2018

Zain Saudi Arabia’s board of directors has approved an offer to sell and lease back 8,100 mobile towers and related passive infrastructure to IHS Holding Limited (IHS) for around SAR2.43 billion (USD648 million). Under the terms of the agreement, Zain KSA is selling only its passive, physical infrastructure to IHS and will retain its intelligent software, technology and intellectual property with respect to managing its network. The agreement also involves a lease back period of 15 years, with a five-year renewal option, and the deployment of an additional 1,500 towers over the next six years. The transaction is subject to a final binding agreement between the parties, which will include an approval requirement from the Kingdom’s Communications and Information Technology Commission (CITC), as well as approval from lenders.