Riyadh – Mubasher: Mobile Telecommunication Company Saudi Arabia (Zain KSA) transferred the ownership of its subsidiary Zain Business Limited to the Saudi Public Investment Fund (PIF) at a nominal value of SAR 10,000.
Following the deal, the fund changed the trade name of Zain Business Limited to The Golden Lattice Investment Company (GLI), according to a recent bourse disclosure.
Zain KSA signed an asset purchase agreement with GLI, under which the latter will acquire at least 8,069 telecom tower sites at a total value of SAR 3.02 billion. Once completing the deal, the Tadawul-listed firm will receive cash proceeds worth SAR 2.42 billion and 20% equity in GLI.
Subject to obtaining the required licenses, Zain KSA will transfer at least 3,000 sites of the total 8,069 to GLI and the financial completion date will be set and the signed agreements will be executed.
Upon the shareholders’ agreement that was announced last February, the PIF will hold a 60% stake in the towers, whereas Prince Saud bin Fahad and Sultan Holding Company will own 10% each.
Zain KSA expects gains worth SAR 1.10 billion from the transaction during the next 18 months to the financial closing. The company also noted that it will disclose any further details regarding the transfer process in due time.
Last May, the board of the Communications and Information Technology Commission (CITC) granted its approval for the tower sites transaction.
In the first six months (6M) of 2022, Zain KSA logged net profits after Zakat and tax of SAR 214 million, an annual leap of 157.83% from SAR 83 million.
