Options include forming a consortium to buy phone towers owned by both parties
Image used for illustrative purpose. Silhouette communication towers against sky.
By Staff Writer, Arab News
RIYADH: Etihad Etisalat Co. (Mobily) and Mobile Telecommunication Company Saudi Arabia (Zain KSA) are studying several options regarding Towers Co., including the possibility of listing as much as 30 percent in the Saudi market, CNBC Arabia reported, citing two banking sources.
Financial regulators in the Kingdom agreed to the merger earlier this year.
“There are several options on the table and consultants have been appointed to study the matter,” an investment banking source told CNBC Arabia.
“Options include forming a consortium to buy phone towers owned by both parties by acquiring a minority stake with Mobily and Zain enjoying majority stakes,” said the source.
“There is also an option to operate these towers on behalf of the two companies through an intermediary company with a rate of return (RoR) system,” he added.
Consultants have already been appointed to study the proposed offering, with discussions currently underway, another source said.
“The aim is to reach an appropriate choice about the matter at a time when the two companies are looking to maximize their returns from the assets of the towers activity after the merger, as those towers are estimated at more than 18,000 towers,” he said.
An alliance of companies outside Saudi Arabia may join local firms to acquire a stake in the new company, the banking source said.
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