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The new company is expected to achieve a run-rate revenue of $500 million annually
Zain Group, Ooredoo and TASC Towers Holding have announced the signing of a definitive agreement to combine all their tower assets to create a huge $2.2 billion dollar entity.
The three firms, based in Kuwait, Qatar, and Dubai, respectively, entered into talks in July regarding the deal, which combines their collective 30,000 towers in Qatar, Kuwait, Algeria, Tunisia, Iraq, and Jordan, creating the Middle East and North Africa’s largest tower company.
The newly created entity will be worth approximately $2.2 billion, with Ooredoo and Zain to each own a 49.3% stake in the newly restructured entity through a process of an asset and cash equalisation. The founders of TASC, which is the largest independent towerco in the MENA region, will take the remaining shares, through Digital Infrastructure Assets LLP, and will continue to manage business operations.
Ooredoo and Zain will both keep their respective active infrastructure.
The new company, which has not yet been named, is expected to achieve a run-rate revenue of $500 million annually.
“(This deal) also positions the region as an advanced player in the global telecoms landscape, and we anticipate wide-ranging positive implications for the region – from economic growth and upgraded connectivity to technological improvements and increased global relevance,” said the three companies in a joint statement.
“The deal also demonstrates our joint dedication to supporting the reduction of the region’s carbon footprint, contributing to our vision of reshaping the telecommunications sector by building a more sustainable ecosystem and ensuring a better-connected future for our communities across the region,” the CEOs concluded.
The deal is expected to close sometime next year, with the implementation in each market phased to adhere to each country’s regulatory framework.
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