Mubasher: National Mobile Telecommunications Company (Ooredoo), Mobile Telecommunications Company (Zain Group), and TASC Towers Holding joined forces to create the largest tower firm in the MENA region.
Under a cash and share deal, the joint tower company includes approximately 30,000 towers, with a combined estimated current enterprise value (EV) of $2.20 billion, according to a press release.
Ooredoo and Zain will equally retain a substantial stake of 49.30%, each, in the newly-restructured entity. Meanwhile, the founders of TASC will retain the remaining shareholding, through Digital Infrastructure Assets LLP, and will continue to manage the operations of the business.
The tower entity is expected to achieve run-rate revenues close to $500 million on an annual basis, with earnings before interest, taxes, depreciation, and amortisation after leases (EBITDAaL) of over $200 million every year.
Operating model will provide passive infrastructure as a service, which will back the reduction of MENA’s carbon footprint,
The transaction, which was first announced in July 2023, aligns with the three entities’ objectives to drive growth and value for shareholders.
The CEOs of Ooredoo, Zain, TASC, commented: “It [the deal] positions the region as an advanced player in the global telecoms landscape, and we anticipate wide-ranging positive implications for the region – from economic growth and upgraded connectivity to technological improvements and increased global relevance.”
“This strategic transaction will unlock significant shareholder value through higher earnings multiples, as well as ensure capital efficiency, optimising balance sheets for our respective companies and creating new possibilities for investors,” the joint statement read.
They concluded: “The deal also demonstrates our joint dedication to supporting the reduction of the region’s carbon footprint, contributing to our vision of reshaping the telecommunications sector by building a more sustainable ecosystem and ensuring a better-connected future for our communities across the region.”
