A Landmark Merger in Telecom Infrastructure
In a significant consolidation within the telecommunications sector, Zain Group, Ooredoo, and TASC Towers Holding have reached a definitive agreement to merge their tower assets, creating a colossal $2.2 billion entity. This move positions the new company as the largest tower operator in the Middle East and North Africa (MENA) region.
Uniting 30,000 Towers Across Six Nations
The deal, which emerged from discussions initiated in July, brings together a combined total of 30,000 towers located in Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan. This merger not only signifies a remarkable scale-up in operations but also marks a strategic unification of resources in the region.
Stakeholding and Management Structure
In this new arrangement, Ooredoo and Zain will each hold a 49.3% stake in the restructured entity, achieved through a combination of asset and cash equalization. The remaining shares will be owned by the founders of TASC, currently the largest independent tower company in MENA, through Digital Infrastructure Assets LLP. TASC will continue to steer the business operations post-merger.
Ooredoo and Zain Retain Active Infrastructure
Both Ooredoo and Zain will maintain ownership of their respective active infrastructures, ensuring continuity and stability in their ongoing operations.
Projected Revenue and Regional Impact
The yet-to-be-named new company is poised to generate an impressive run-rate revenue of $500 million annually. The joint statement from the three companies highlighted the merger’s potential to position the region as a frontrunner in the global telecom landscape. They anticipate this move to spur economic growth, enhance connectivity, foster technological advancements, and elevate the region’s global significance.
Commitment to Sustainability and Regional Development
The CEOs of the involved companies emphasized their shared commitment to reducing the region’s carbon footprint. The merger aligns with their vision to reshape the telecommunications sector, creating a more sustainable ecosystem and ensuring a better-connected future for communities across the region.
Phased Implementation and Regulatory Compliance
Expected to be finalized next year, the implementation of this deal will be phased to comply with the regulatory frameworks of each country involved. This structured approach aims to ensure a smooth transition and integration of the merged assets across different markets.