Zain completes USD130m Kuwait tower sale and leaseback to IHS

13 Feb 2020

Zain Group has completed the sale and leaseback of the passive physical infrastructure of its 1,620 mobile tower portfolio in Kuwait for USD130 million to IHS Holding, claiming the deal as a first of its type by a Middle East cellular network operator. Zain’s announcement on 12 February underlined that it will retain its software, technology and intellectual property with respect to managing its network, while the sale was aimed at ‘helping Zain to maximise efficiency in its operating model, taking into account future lease terms and the expansion of 5G towers across Kuwait.’

Bader Al-Kharafi, Vice-Chairman and Group CEO of Zain, said: ‘This historical transaction unlocks value for shareholders as it gives us greater flexibility to focus on higher yielding digital investments, 5G expansion and operational efficiencies in Kuwait. It also supports Zain’s transformational strategy in becoming a digital lifestyle provider through optimising service delivery and enhancing customer experience.’ The deal has been approved by Kuwaiti telecoms regulator CITRA.

Kuwait, IHS Holding, Zain Group, Zain Kuwait