Mobily on Wednesday confirmed it may sell its cell tower portfolio following reports that it has sounded out potential suitors.
"Mobily would like to clarify that it is currently at the phase of studying the possibility of selling the towers," said Mobily in a statement filed with the Saudi Stock Exchange. "It has not entered into any agreement in that regard, nor determined the financial impact thereof."
Sources cited by The Wall Street Journal on Tuesday claimed that the Saudi operator has sent letters inviting interest from international tower companies and private equity firms. They also claimed Mobily has hired New York-based TAP Advisors to help it carry out the sale.
According to the sources, Mobily boasts around 10,000 cell towers in Saudi Arabia and hopes the sale will bring in between US$1.5 billion and $2 billion.
The company is under pressure to improve its financial position following an embarrassing accounting error which came to light in November 2014.
Accounting errors related to a loyalty programme and its fibre-to-th e-home (FTTH) led Mobily to restate its earnings as far back as 2013. It prompted the indefinite suspension of CEO Khalid Omar Al Kaf, who was replaced in April by Khalifa Al Shamsi.
