Mobile Telecommunication Company Saudi Arabia (Zain KSA) announces selling stakes in the tower’s infrastructure at a value of SAR 3.02 billion.
| Element List | Explanation |
|---|---|
| Introduction | Mobile Telecommunication Company Saudi Arabia "ZAIN KSA” announces the completion of selling stakes in the tower's infrastructure to Golden Lattice Investment Company (“GLIC”) owned by the Public Investment Fund (PIF), Zain KSA, HRH Prince Saud Bin Fahad, and Sultan Holding Company. |
| Transaction Details | Zain KSA has complied with the transfer of at least 3000 towers out of the 8,069 |
| Transaction Value | SAR 3.02 billion |
| Transaction Terms | The ownership of the remaining towers will be transferred in batches in a period not exceeding 18 months. |
| Parties of the Transaction | Zain KSA and GLIC.
GLIC shareholders are: 1- PIF; ownership 60% 2- Zain KSA; ownership 20% 3- HRH Prince Saud bin Fahd bin Abdulaziz; ownership 10% 4- Sultan Holding Company; ownership 10% |
| Transaction Execution Date | 2023-01-08 Corresponding to 1444-06-15 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | Zain KSA will sell at least 8,069 physical towers infrastructure and retain ownership of all other equipment from wireless communication antennas, software, technology, and IPs. |
| Asset Book Value | SAR 1.6 billion |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | The net value of the assets forming the subject matter of the transaction was:
in 2022, SAR 1.4 billion (Up to the last audited financials on Sep 2022). 2021, SAR 1.3 billion. 2020, SAR 1.5 billion. |
| Transaction reasons | The reasons are to maximize the benefit for its shareholders through reducing the company’s dependence on capital expenditures and separate the ownership, operation, and maintenance of the towers, which will lead to strengthening the financial position of Zain KSA, focusing on investing in adjacent markets and creating value to Zain’s customers. |
| Expected Impact of the Transaction on the Company and Its Operations | 1- 20% equity stake in “GLIC”
2- Receiving of SAR 2.4 Billion The transaction will result in an expected net profit of up to SAR 1.1 Billion, to be realized over the period of transferring ownership of the towers in batches within a period not exceeding 18 months. |
| Details of Using The Proceeds of the Asset Sale | Zain KSA will use the proceeds of the assets sale to maximize the benefit for its shareholders through a combination of Debt reduction and the funding of its investment and its core business. |
| Related Parties | As part of Zain KSA’ transparency, Zain KSA would like to clarify that the decision to approve the final offers by the Board of Directors was unanimous, after excluding the following related parties in this transaction, “Zain KSA” Chairman H.H Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer as he is also the Chairman of Sultan Holding Company, in addition, Zain board member Mr. Saud Al-Bawardi who works for United Company, where H.R.H Prince Saud bin Fahd bin Abdulaziz has an interest in. |
| Additional Information | Any substantial developments will be announced in due course. |
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