Zain Saudi Arabia (Zain KSA) signed an agreement wroth USD 666 million to sell and lease back the passive physical infrastructure of its mobile tower portfolio to IHS Holding Limited (IHS).
The agreement stipulates for the sale of the infrastructure of 8,100 towers, estimated at USD 666 million, with a lease back period of 15 years, with a 5-year renewal option, the Kuwait-based Zain Group announced said in a statement on Wednesday.
Under the agreement, Zain KSA is selling only its passive, physical infrastructure to IHS and will retain its intelligent software, technology and intellectual property with respect to managing its network, the statement added.
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The deal includes the building of an additional 1,500 new towers within the next six years, it noted.
The deal made Zain KSA one of the first companies which implement this step, Bader al-Kharafi, Zain Vice-Chairman& Group CEO& Zain Saudi Arabia Vice-Chairman, was quoted by the statement as saying.
"Zain KSA is transforming financially, operationally, and strategically, and this evolution is aimed at the operator emerging as a more successful digital lifestyle services provider and delivering additional shareholder value," he said.
Established in 1983 in Kuwait as the region's first mobile operator, Zain was listed in Kuwait's stock market in 1985; it is a leading mobile telecom innovator in eight markets across the Middle East and Africa.
