Zain KSA announces selling stakes in GLIC tower’s infrastructure at SR 3 bln, net profit of SR 1.1 bln expected

Mobile Telecommunication Company Saudi Arabia “ZAIN KSA” announces the completion of selling stakes in the tower’s infrastructure to Golden Lattice Investment Company (“GLIC”) owned by the Public Investment Fund (PIF), Zain KSA, HRH Prince Saud Bin Fahad, and Sultan Holding Company.
It explained that it has complied with the transfer of at least 3000 towers out of the infrastructure of the 8,069physical tower and retains ownership of all other equipment from wireless communication antennas, software, technology, and Ips. Still, the ownership of the remaining towers will be transferred in batches in a period not exceeding 18 months.
According to the company’s statement published on “Tadawul, the net value of the assets forming the subject matter of the transaction was 2022: SAR 1.4 billion (Up to the last audited financials on Sep 2022), in 2021: SAR 1.3 billion in 2020: SAR 1.5 billion.
The reasons are to maximise the benefit for its shareholders by reducing the company’s dependence on capital expenditures and separate the ownership, operation, and maintenance of the towers, which will lead to strengthening the financial position of Zain KSA, focusing on investing in adjacent markets and creating value to Zain’s customers.
It is noteworthy that Zain KSA will use the proceeds of the assets sale to maximise the benefit for its shareholders through a combination of Debt reduction and the funding of its investment and its core business.
Parties of the Transaction:
Zain KSA and GLIC, noting that GLIC shareholders are:
1- PIF; ownership 60%
2- Zain KSA; ownership 20%
3- HRH Prince Saud bin Fahd bin Abdulaziz; ownership 10%
4- Sultan Holding Company; ownership 10%
The company expects to own a 20% equity stake in “GLIC”, receiving SAR 2.4 billion from this transaction. With that, the transaction will result in an expected net profit of up to SAR 1.1 billion, to be realised over transferring ownership of the towers in batches within a period not exceeding 18 months.
As part of Zain KSA’s transparency, Zain KSA would like to clarify that the decision to approve the final offers by the Board of Directors was unanimous after excluding the following related parties in this transaction, “Zain KSA” Chairman H.H Prince Naif bin Sultan bin Mohammed bin Saud Al Kabeer as he is also the Chairman of Sultan Holding Company, in addition, Zain board member Mr. Saud Al-Bawardi who works for United Company, where H.R.H Prince Saud bin Fahd bin Abdulaziz has an interest in.