Telecom companies Zain Group from Kuwait (ZAIN.KW), Ooredoo from Qatar (ORDS.QA), and Dubai-based TASC Towers Holding announced that they have reached definitive agreements to merge their tower assets. The merger will result in the formation of a new entity valued at 680 million dinars ($2.2 billion) through a cash-and-share deal.
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In July, Zain, Ooredoo, and TASC had disclosed their plans for exclusive discussions to establish the largest tower company in the Middle East and North Africa region. This merger would bring together approximately 30,000 tower assets from countries including Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan.
Through an “asset and cash equalization process,” the newly formed entity is expected to possess an enterprise value of $2.2 billion. Also, this process entails a redistribution of assets and cash between Zain and Ooredoo, resulting in both companies holding a 49.3 percent share in the new entity.
Enhanced connectivity
The founders of TASC Towers Holding will retain the remaining ownership stake. The transaction is anticipated to be finalized in 2024, pending all required regulatory approvals. Executives from the three companies expressed their belief that this deal will not only position the region as a prominent player in the global telecoms industry but also have far-reaching positive effects. In addition, they anticipate benefits such as economic growth, enhanced connectivity, technological advancements, and increased global significance for the region.
$500 million in revenues
Furthermore, according to a statement from Ooredoo, the newly formed tower entity is projected to generate annual run-rate revenues of nearly $500 million. Zain acknowledged that the transaction would have a positive effect on its operational growth, although it is currently unable to determine the financial impact at this stage.
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