The “Uridu” Group (a Qatari public shareholding company) and the “Zain” Group announced today the completion of the first closing of the deal aimed at launching their joint regional tower platform, in a step aimed at enhancing the efficiency of the digital infrastructure and expanding the scope of the two groups’ businesses in the region’s markets.
The two companies explained in a press release, published by the Qatar Stock Exchange today, that this closure brings together the assets of the towers belonging to “I want Qatar” (the towers) and “Zain Kuwait” (ITK) within a unified regional tower platform owned equally by the two groups, 50 percent for each, and includes about 4,000 telecommunications towers.
The deal is expected to contribute to creating significant added value by increasing economies of scale, improving capital efficiency, and adopting a customized operating model based on passive infrastructure.
The towers platform will support the provision of “infrastructure as a service” services, allowing telecommunications operators to access infrastructure with greater capital efficiency, and providing support for the continued development of digital infrastructure in the region’s markets.
It is expected that additional Abraaj wallets will be gradually integrated into the platform, in accordance with applicable closing conditions and after obtaining regulatory and other required approvals.
In this context, Mr. Aziz Al Othman Fakhro, CEO of the “Ureed” Group, explained that completing the first phase of the closure represents a very important milestone in the process of building a regional tower platform designed to create great added value, with a clear path for expansion through additional contributions from other markets.
He added: “We are moving forward with implementing our plans across the various digital infrastructure sectors specified in our strategy, as part of our continued construction of a leading regional portfolio.”
For his part, Mr. Badr Nasser Al-Kharafi, Vice Chairman and CEO of Zain Group, pointed out that the first closing of the towers platform deal reflects the two groups’ joint strategy aimed at creating specialized, sustainable and expandable platforms that achieve greater value from their assets and support efforts to reduce the carbon footprint in the region.
It is worth noting that both “Uridu” and Zain will retain their active infrastructure, including the technical equipment, software, and intellectual property rights necessary to operate and manage their respective telecommunications networks.