Riyadh – Mubasher: Mobile Telecommunication Company Saudi Arabia (Zain KSA) announced selling stakes in its towers’ infrastructure to the subsidiary Golden Lattice Investment Company (GLIC) for a total value of SAR 3.02 billion on 8 January.
Zain KSA has complied with the transfer of at least 3,000 towers out of the target 8,069 physical towers infrastructure. The company will retain ownership of all other equipment from wireless communication antennas, software, technology, and IPs.
Furthermore, the ownership of the remaining towers will be transferred in batches within 18 months, according to a bourse filing.
The listed firm owns 20% equity in GLIC, while the Public Investment Fund (PIF) holds the controlling stake of 60%. The remaining 20% ownership is equally distributed as 10% by each of Prince Saud bin Fahad and Sultan Holding Company.
Zain KSA noted that the asset book value stands at SAR 1.60 billion.
The transaction will generate an estimated net profit of up to SAR 1.10 Billion, which will be realised during the period of the towers’ transfer. Zain KSA will use the proceeds of the assets sale to maximise the benefit for its shareholders through debt reduction as well as funding its investment and core business.
Following the transaction, the expected impact will be holding 20% in GLIC besides receiving SAR 2.40 billion.
In October 2022, Zain KSA transferred the ownership of its subsidiary GLIC, which was known as Zain Business Limited, to the Saudi PIF at a nominal value of SAR 10,000.
