Zain Saudi Arabia earns SAR 1.1 bn from towers sale to PIF
The Saudi Mobile Telecommunications Company Zain Saudi Arabia announced the transfer of ownership of one of its subsidiaries, Zain Business Limited, to the Public Investment Fund (PIF). According to Zain, the transfer of ownership of the 8,069 towers will result in gains of 1.1 billion riyals ($293 million) in the 18 months following the financial completion.
The Fund has changed the unit’s name to the Golden Lattice Investment Company (GLI).
Zain also stated that it had signed an asset purchase agreement with GLI, under which ownership of at least 8,069 towers will be transferred from Zain Saudi Arabia to GLI for a total value of 3.026 billion riyals. Under this agreement, Zain will receive 2.421 billion riyals, in addition to a 20 percent stake in GLI when financial completion is achieved.
Financial completion is achieved when all statutory requirements are met and no less than 3,000 towers are transferred to the ownership of GLI as per the asset purchase agreement.