Qatar’s Ooredoo, Kuwait’s Zain Group, and the UAE’s TASC Towers Holding have formally agreed to merge their combined portfolio of approximately 30,000 cellular towers, forming a $2.2B entity – the largest tower operator in the Middle East and North Africa. In the merged entity, Ooredoo and Zain will each hold 49.3%, achieved through an asset and cash equalisation process, while TASC’s founders will retain the remaining ownership and continue managing business operations.
The newly established tower entity is expected to generate annual run-rate revenues nearing $500 million, with an EBITDAal (after leases) exceeding $200M. The consolidation aims to create opportunities for mobile network operators, providing a capital-efficient alternative for building, owning, and managing passive infrastructure in an environmentally friendly manner. As an independent tower company, TASC will offer Passive Infrastructure as a Service (PIaaS) in collaboration with Ooredoo and Zain’s combined assets.
Unlocking Shareholder Value: Telecom Giants Ooredoo, Zain, and Asiacell Embrace Strategic Transaction for a Sustainable Future
The executives of the three companies highlighted the strategic transaction’s potential to unlock shareholder value, increase earnings multiples, enhance capital efficiency, and optimise balance sheets. They emphasized the joint commitment to reducing the region’s carbon footprint and reshaping the telecommunications sector for a more sustainable and interconnected future.
The partnership model positions itself to meet the needs of other mobile network operators seeking to lower costs, reduce carbon emissions, and address the growing demand for sites due to double-digit growth in mobile data consumption across the region. Ooredoo and Zain will retain their active infrastructure, including wireless communication antennas, intelligent software, and intellectual property.
In the Gulf region, telecom companies have been divesting tower assets to cut infrastructure costs and concentrate on information and communications technology, according to Gulf Business.
Ooredoo’s tower network in Oman will undergo a standalone process. Past tower asset transactions in the Gulf include Zain Saudi Arabia’s sale of 8,069 towers to Saudi Arabia’s sovereign fund and Omantel’s sale of 2,890 towers to Helios Towers. Ooredoo and Zain have also separately entered tower-related agreements to streamline operations and enhance profitability.
