Zain dissolves Mobily tower consortium; approves non-binding offers from trio of investors

9 Sep 2021

Zain Saudi Arabia has announced that it has not reached an agreement with Etihad Etisalat (Mobily), Raidah Investment Co (AlRaidah) and IHS KSA regarding the establishment of a consortium to acquire the wireless tower infrastructure of Mobily and Zain, and the venture will be dissolved. The merger plan, first announced in July 2020, was looking to unify tower infrastructure under a new Saudi-registered entity, Towers Company, which was set to operate under a licence for providing wholesale infrastructure services (category A, towers and masts). Mobily, Zain KSA and AlRaidah were to collectively own the majority of Towers Company’s shares, with IHS taking a minority stake.

Instead, Zain has revealed that its board of directors has approved non-binding offers from the Public Investment Fund (PIF), HRH Prince Saud Bin Fahad and Sultan Holding Company to acquire stakes in the Zain KSA towers infrastructure. The offers value the 8,069 Zain KSA towers at SAR3.026 billion (USD807 million). Under the terms of the offers, PIF will acquire 60% in the towers venture, with Zain retaining 20%, HRH Prince Saud Bin Fahad (10%) and Sultan Holding Company (10%).

Saudi Arabia, Mobily (Etihad Etisalat), Zain Saudi Arabia