• Mega Merger: Zain Group, Ooredoo, and TASC Towers Holding have formally agreed to merge their tower assets in a substantial $2.2 billion cash-and-share deal.
• Equitable Stake Distribution: The new entity, targeted to reach a $2.2 billion enterprise value, will materialize through an “asset and cash equalization process” between Zain and Ooredoo, resulting in both entities holding a significant 49.3% stake.
• Strategic Vision and Revenue Projections: In a collective statement, executives from Zain, Ooredoo, and TASC expressed their strategic vision, aiming to position the region as a key player in the global telecom landscape.
Kuwait’s Zain Group, Qatar’s Ooredoo, and Dubai’s TASC Towers Holding have formalized agreements to merge their tower assets, creating a formidable $2.2 billion entity in a cash-and-share transaction, according to reporters.
This strategic move solidifies the culmination of exclusive talks initiated in July, aiming to establish the largest tower company in the Middle East and North Africa, boasting approximately 30,000 tower assets across Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan.
The new entity, anticipated to achieve an enterprise value of $2.2 billion, will materialize through an “asset and cash equalization process” between Zain and Ooredoo, granting both entities a 49.3% stake. TASC’s founders will retain the remaining ownership, according to Reuters.
The transaction is slated for completion in 2024, contingent upon securing all requisite regulatory approvals.
In a joint statement, executives from Zain, Ooredoo, and TASC expressed their anticipation of positioning the region as a prominent player in the global telecom landscape. They foresee widespread positive ramifications, encompassing economic growth, enhanced connectivity, technological advancements, and heightened global relevance.
The newly formed tower entity is poised to achieve an annual run-rate revenue nearing $500 million, according to a statement by Ooredoo.
While Zain expects a positive impact on operational growth from the transaction, the financial implications remain undetermined at this stage.
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