Zain Group agreed the sale and leaseback of 2,607 towers in Jordan to UAE-based infrastructure company TASC Towers in an $88 million deal, as the operator cashes-in on passive assets to help fund network upgrades and technology upgrades.
In a statement, Zain detailed a 15-year agreement with TASC Towers to sell and leaseback the towers, following similar deals including a move to sell 1,620 towers in home market Kuwait and more than 8,000 towers in Saudi Arabia.
As part of the agreement, TASC Towers will manage Zain Jordan’s supporting facilities, such as power generators, fuel tanks and protection kiosks, while the deal also includes an agreement requiring a minimum of 525 sites to be built over the next five years.
Zain Jordan will retain wireless communications antennas, intelligent software and IP required for managing its network.
TASC Towers is 25 per cent owned by Zain Group. Its main business is focused on acquiring and leasing back towers across the Middle East, North and East Africa and South Asia.
Bader Al-Kharafi, Zain Group vice chairman and group CEO, said as a strategic shareholder in TASC Towers, it was committed to supporting its regional expansion “and make it a leading operator of telecom infrastructure”.
He added the deal gives Zain Jordan greater flexibility to make investments to meet increasing demands, and “enable a laser focus” on its core business.Subscribe to our daily newsletter Back