Saudi Zain signs agreement worth $666mln with IHS Holding ltd.

The agreement stipulates for the sale of the infrastructure of 8,100 towers, with a lease back period of 15 years

  
Image used for illustrative purposes. The telecom sector is the second largest in terms of market capitalisation on the Dubai and Abu Dhabi stock markets and is the third largest on the Saudi market.

Image used for illustrative purposes. The telecom sector is the second largest in terms of market capitalisation on the Dubai and Abu Dhabi stock markets and is the third largest on the Saudi market.

Getty Images/ Jasmin Merdan

KUWAIT CITY: Zain Saudi Arabia (Zain KSA) signed an agreement wroth $666 million to sell and lease back the passive physical infrastructure of its mobile tower portfolio to IHS Holding Limited (IHS).

The agreement stipulates for the sale of the infrastructure of 8,100 towers, estimated at $666 million, with a lease back period of 15 years, with a 5-year renewal option, the Kuwait-based Zain Group announced said in a statement on Wednesday.

Under the agreement, Zain KSA is selling only its passive, physical infrastructure to IHS and will retain its intelligent software, technology and intellectual property with respect to managing its network, the statement added. The deal includes the building of an additional 1,500 new towers within the next six years, it noted.

The deal made Zain KSA one of the first companies which implement this step, Bader Al-Kharafi, Zain Vice- Chairman & Group CEO & Zain Saudi Arabia Vice-Chairman, was quoted by the statement as saying. (KUNA)

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