In July, Zain Group, in collaboration with Qatari telecoms company Ooredoo, announced their discussions to establish the largest tower company in the Middle East and North Africa.
Zain Group has expanded its ownership share in the UAE-based TASC Towers, boosting its stake from 83.47% to 92.87%. This strategic move was confirmed in a disclosure letter dispatched to Boursa Kuwait by Bader Nasser Al-Kharafi, Vice-Chairman and CEO of Zain Group, according to a report by Arab News.
Al-Kharafi stated that TASC Towers will continue to operate independently, maintaining a board of directors primarily composed of non-Zain Group members. This structure aligns with Zain’s shareholding arrangement, and as a result, TASC Towers will remain an associated company within the Zain Group portfolio.
In his material information disclosure, Al-Kharafi underscored that this development would have no adverse impact on Zain Group’s financial standing.
TASC Towers holds the distinction of being the largest independent tower company in the Middle East and North Africa region.
This announcement follows Zain Group’s earlier revelation in July, wherein they, in collaboration with Qatari telecommunications company Ooredoo, disclosed their discussions aimed at establishing the most extensive tower company in the Middle East and North Africa. The plan entailed consolidating their collective telecommunications tower assets, totaling approximately 30,000, situated in Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan, through a cash and share transaction to create an autonomous tower company.
However, the statement emphasised that the realisation of this deal was contingent upon reaching final terms, the signing of definitive agreements, and securing all requisite corporate and regulatory approvals.
According to Ooredoo’s statement at the time, the expanded tower company was envisioned to operate independently as a standalone entity, offering passive infrastructure services throughout the region. The primary focus was on optimising operational efficiency, seeking synergies, and reducing carbon emissions.
The joint statement further highlighted that this transaction had the potential to enhance shareholder value for both Ooredoo Group and the Kuwaiti telecommunications giant, establishing a more efficient capital structure.
Both operators are committed to executing on their respective growth strategies to unlock significant capital and maximise value for shareholders while at the same time reducing the carbon footprint within the MENA region, the joint statement said at that time.