Zain KSA cancels tower sale agreement with IHS

25 Jun 2019

Mobile Telecommunications Company Saudi Arabia (Zain KSA) has announced that it has decided not to sell its towers to IHS Holding Limited (IHS), after receiving a letter from Saudi Arabia’s Communications and Information Technology Commission (CITC) stating that IHS had not meet the regulatory requirements and had not obtained the necessary licence for the lease and purchase of the towers.

As previously reported by TeleGeography’s CommsUpdate, in March 2019 Zain KSA signed an agreement to sell and lease back the passive physical infrastructure of its mobile tower portfolio to IHS for SAR2.52 billion (USD672 million). The deal was first agreed in November 2018, though the transaction value was subsequently revised from an original figure of SAR2.43 billion, to SAR2.52 billion. Zain KSA had agreed to sell 8,100 towers with a lease back period of 15 years, with a five-year renewal option, in addition to agreeing to build 1,500 new towers over the next six years.