Zain KSA says separating tower ownership, operation to help focus on innovation, provide liquidity

Bader Al-Kharafi, Vice Chairman of Mobile Telecommunication Company Saudi Arabia (Zain KSA)

Bader Al-Kharafi, Vice Chairman of Mobile Telecommunication Company Saudi Arabia (Zain KSA), said separating ownership from operation and maintenance of towers will contribute to increasing the telco’s focus on innovation.

This will also help the company provide modern products to keep pace with the future of digital world, as well as reduce capital investments, Al-Kharafi said.

He noted that the deal will provide liquidity to the company, which will reflect on its profit.

In a statement, Al-Kharafi said the deal comes at a time, when Zain KSA is pursuing its expansion plans through injecting additional qualitative investments and focusing on the vertical expansion of sector services based on the 5G technologies.

The telecom operator seeks to enhance governance and financial efficiency, as well as qualitative investments that make a difference in the information technology industry.

The board of directors approved the final offers received from the Public Investment Fund (PIF), Prince Saud bin Fahad, and Sultan Holding Co. to acquire stakes in Zain KSA’s tower infrastructure, Argaam earlier reported.

According to the final offer, the Kingdom’s sovereign wealth fund, Prince Saud bin Fahad, and Sultan Holding will acquire 60%, 10%, and 10% stakes in the tower infrastructure, respectively. On the other hand, Zain KSA will hold the remaining 20% stake.

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