Sold for $180m, leased back
The Zain Group is to sell and leaseback its estate of 4,968 towers portfolio in Iraq to Dubai-based TASC Towers Iraq for $180 million. The 15-year lease agreement allows the telco to hand over the management of its passive infrastructure, while the tower specialist will use its know-how to sweat the assets and build at least 98 new tower sites being in the next year, a statement said.
TASC Towers will take on the task of supporting Zain Iraq’s power generators, fuel tanks, shelters and other variable facilities in its ‘passive’ infrastructure. Zain Iraq will retain its active infrastructure, including wireless communication radios, antennas, intelligent software, transmission systems and intellectual property with respect to managing its telecom network.
TASC Towers is an international tower operator which specialises in buy-to-leaseback deals, builds new towers to order and makes tower related financing and investment deals in the MENEASA market (Middle East, North & East Africa and South Asia). As an independent tower operator, TASC Towers’ subsidiary in Iraq will optimise the co-location of mobile network sites with other telco operators in the country, making more profitable use of the mobile site infrastructure, making more efficient use of power, lessening the reliance on generators and lowering the industry’s carbon footprint, according to Bader Al-Kharafi, Zain Vice-Chairman of Group CEO .
Zain’s 4Sight strategy aims to create significant value for shareholders through the unlocking of capital and optimization, said Al-Kharafi, “The infrastructure assets will flourish under the management of an independent team.” The operational efficiencies will give Zain Iraq the power to invest in network upgrades and cutting-edge ICT technologies to keep pace with the surging demand for reliable and high-speed connectivity, said Al Kharafi “This landmark deal that will be instrumental in developing Iraq’s digital economy.”
This Iraq tower sale is the fourth tower transaction undertaken by Zain following similar pioneering deals including the transfer of 2,830 towers in Jordan, 1,620 towers in Kuwait and 8,100 towers in Saudi Arabia. “Our independent operating model boosts the operational and carbon efficiency of passive tower infrastructure” said Iyad Mazhar, CEO of TASC Towers, “this encourages more mobile operators to in technology upgrades and connectivity speeds.”
FTI Capital Advisors acted as exclusive financial advisor to Zain Group on this transaction.