Mobily says merging telecom towers under new entity not aligning with strategy

Logo of Etihad Etisalat Co. (Mobily)

Etihad Etisalat Co. (Mobily) said that the joint application from Mobile Telecommunication Company Saudi Arabia (Zain KSA), Raidah Investment Co. (AlRaidah), and IHS KSA Ltd. (IHS) to acquire the telecom towers, and merge them under a single entity, do not align with the company’s strategy and objectives of achieving financial and operational efficiency.

Mobily will continue evaluating alternative offers to achieve the best return for the company and its investors through maximizing operational efficiency and upgrading the network, with the support of the Communications and Information Technology Commission (CITC), the telecom operator said in a bourse statement.

Any material developments will be announced in due course, the statement added.

In July 2020, Mobily and Zain KSA signed a non-binding memorandum of understanding (MoU) to form a joint committee, invite offers for telecom towers, mull the options of purchasing the towers owned by the two companies, and merging them into one company with other investors or operating them on their behalf, according to data compiled by Argaam.

In March 2021, the company received a letter from CITC board, giving its in-principle approval on the joint application from Zain KSA, Mobily, AlRaidah and IHS to merge and unify towers under Towers Co.

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