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Upon completion, the new company is set to become the largest tower company in the Middle East and North Africa (MENA) region
Qatar’s largest telecom company Ooredoo, Dubai’s TASC Towers and Kuwait-based Zain Group have begun talks to potentially combine their mobile tower assets into a jointly owned independent company that would cover six countries in the Middle East and North Africa.
The potential joint venture would include around 30,000 towers in Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan, and will focus on delivering “operational efficiency, synergy, and a carbon footprint reduction”.
The new independent tower company “will provide passive infrastructure-as-a-service throughout the region with a focus on operational efficiencies, synergies, and reduction of carbon footprint,” according to the joint press release.
“Both Ooredoo and Zain will retain their respective active infrastructure, including wireless communication antennas, intelligent software, and intellectual property with respect to managing their telecom networks,” the statement added.
According to the operators, this new, more efficient capital structure will add shareholder value for both groups.
If negotiations continue, the signing of the cash and share deal is expected to take place during the third quarter of this year, subject to the typical regulatory approvals.
The ownership breakdown of the venture is currently undecided as the deal is in its preliminary stages.
Ooredoo’s revenue hit QAR 23 billion in 2022 ($6.2 billion) and has seen further growth in the first quarter of this year, with a 2% revenue increase between January and March. The company operates in eight countries in the MENA region, as well as in the Maldives and Indonesia.
Zain is Kuwait’s leading operator, providing services to around 53 million customers across seven countries.
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