Zain has sold its telecom towers in Kuwait for $165 million to IHS Holding.
Zain has more than 1,600 mobile telecommunication towers located in prime, strategic locations across Kuwait.
Zain will have a minority equity stake in a new entity with IHS Holding that will manage Zain’s tower assets in Kuwait. IHS is the largest independent tower operator in Europe, Middle East and Africa by tower count and the third largest independent multinational tower company globally.
Zain decided to sell and leaseback the passive physical infrastructure of its mobile towers in Kuwait as part of its strategy to focus on mobile customers. The transaction will enable Zain to focus on its core business and customers while accelerating investment in telecom technologies to meet growing mobile data demand.
“This transaction is set to support Zain’s transformational strategy in becoming a digital lifestyle provider as it will optimize operational efficiencies, enhance customer experience, and deliver greater value for its shareholders,” said Bader Al-Kharafi, group CEO of Zain.
Kuwait’s Communication and Information Technology Regulatory Authority (CITRA) has approved the telecom tower deal.
Under the terms of the transaction, Zain is selling only its passive, physical infrastructure to the new company, and will retain its intelligent software, technology and intellectual property with respect to managing its network.
The transaction will be the first sale and leaseback of telecom towers in the Middle East region by a licensed mobile operator.
IHS Holding will become the first independent tower operator of scale in the Middle East region.
