Addendum Announcement from Mobile Telecommunication Company Saudi Arabia in regards Addendum announcement from Mobile Telecommunication Company Saudi Arabia (Zain) related to exploring the sale of its towers
| Element List | Explanation |
|---|---|
| Introduction | Mobile Telecommunications Company Saudi Arabia (Zain) announces that further to its previous announcement on 02/10/2017 related to exploring the sale and lease back of passive tower infrastructure. That the Board of Directors on 27/11/2018 accepted an offer from IHS Holding Limited for the sale and lease back of its passive towers infrastructure. |
| Date of posting the previous announcement on Tadawul’s website | 2017-10-02 Corresponding to 1439-01-12 |
| Subject of the previous announcement | Addendum announcement from Mobile Telecommunication Company Saudi Arabia (Zain) related to exploring the sale of its towers |
| Change Details on development | The Board of Directors on 27/11/2018 accepted an offer from IHS Holding Limited for the sale and lease back of its passive towers infrastructure. |
| Financial Impact on the change | The sale of 8,100 towers and related passive infrastructure, for a value of SAR 2.43 Billion and lease back for 15 years with the option to renew for 5 years. and the building of an additional 1,500 towers over the next 6 years. The proceeds will be used to reduce the Murabaha facility by SAR 2.43 billion resulting in savings to the debt servicing, and to focus on the company’s core business and grow infrastructure with reduced investment. |
| Additional Information | Under the terms of the transaction, Zain is selling only its passive, physical infrastructure and will retain its intelligent software, technology and intellectual property with respect to managing its network. This is subject to a final binding agreement being entered into between the parties which will include a requirement for Communications and Information Technology Commission (CITC) approval, as well as approval from the lenders. Zain Saudi Arabia will make further announcements regarding material changes, if any. |
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