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The board of directors of Mobile Telecommunications Co. Saudi Arabia, also known as Zain KSA has approved non-binding offers from the Public Investment Fund (PIF), Prince Saud Bin Fahad, and Sultan Holding Company, to acquire stakes in the Zain KSA's telecom towers infrastructure.
The three entities would acquire stakes of 60 percent, 10 percent and 10 percent, respectively, with Zain KSA holding the remaining 20 percent, the telecoms company said in a statement to the Saudi bourse Tadawul, where its shares trade.
The offers valued the 8,069 Zain KSA towers at 3,026 million ($807 million).
Under the terms of the offers, Zain KSA will sell its passive, physical towers infrastructure and retain all other wireless communication antennas, software, technology, and IPs.
Zain KSA said it will be working with the different parties on the best way to execute the offer. The offers submitted do not represent any binding commitment and the final agreements are subject to various approvals and the completion of due diligence by the acquirers, it added.
Earlier this year JV plans between Zain KSA and fellow Saudi telecoms player Etihad Etisalat Co., or Mobily, to merge the towers of both under a single entity fell through when Mobily backed out citing strategic reasons.
For Saudi wealth fund PIF, which manages over $400 billion in assets, the move to acquire stakes in Zain KSA's tower infrastructure comes in line with its strategy of investing in local non-oil projects.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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