Zain Sells Shares of Towers Infrastructure For 3.02 Billion Riyals
The Saudi Mobile Telecommunications Company (Zain KSA) announced the completion of the sale of its tower infrastructure to Golden Lattice(GLIC) Investment Company owned by the Public Investment Fund, Zain, Prince Saud bin Fahd bin Abdulaziz, and Sultan Holding Company.
Zain Sells Tower Infrastructure
The company has committed to transfer the ownership of 3,000 towers out of 8.07 thousand towers, with a total value of 3.02 billion riyals, said Zain in a statement on the Saudi Tadawul on Monday.
The ownership of the remaining towers will be transferred in installments within a period not exceeding 18 months, indicated Zain
It pointed out that only 8.07 thousand tower structures will be sold, while all other equipment, including wireless communications antennas, programs, technologies, and intellectual property, will remain the property of “Zain”.
The company noted that the book value of the towers amounts to 1.6 billion riyals.
It indicated that the net asset value of the deal amounted to about 1.4 billion riyals in 2022 (according to the latest audited financial statements in September 2022). In 2021, it amounted to 1.3 billion riyals while in 2020 it was about 1.5 billion riyals.
Deal Outcomes
Zain said that the expected impact of the deal on the company includes obtaining 2.4 billion riyals, as the company owns a 20% share of the capital of Golden Lattice Company.
Thus, it is expected that the net profit of this deal will reach 1.1 billion riyals, distributed over the period of transfer of tower’s ownership over installments within 18 months.
The company indicated that it will use the deal’s outcomes to maximize the return to its shareholders, through a combination of reducing its financing burdens and financing its investments and core businesses.
Concerning the ownership of Golden Lattice company, the Public Investment Fund owns 60%, Prince Saud bin Fahd bin Abdulaziz owns 10%, and Sultan Holding Company owns 10%, in addition to Zain KSA’s which owns 20%.
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