ORDS and Mobile Telecommunications CompanyK.S.P.C( “ Zain Group ”)- Ticker Zain advertise the signing of definitive agreements between Ooredoo Group, Zain Group and TASC Towers Holding( “ TASC ”) to produce the largest palace company in the MENA region, in a cash and share deal.
The enlarged palace company, comprising roughly 30,000 halls, has a combined estimated current enterprise value of USD2.2 billion. Ooredoo and Zain will inversely retain a substantial stake of49.3 each in the recently restructured reality, through an asset and cash equalisation process. The authors of TASC will retain the remaining shareholding, through Digital structure means LLP, and will continue to manage the operations of the business.
The palace reality is anticipated to achieve run- rate earnings close to USD 500 million annually, with an EBITDAaL( after plats) of further than USD 200 million annually upon the completion of conclusions in all individual countries – including Qatar, Kuwait, Jordan, Iraq, Algeria, and Tunisia. This fiscal position underpins the promising prospects and profitability of the recently restructured palace company.
The signing of this corner sale constitutes a major corner towards realising crucial aspects of both Ooredoo and Zain’s strategies, concentrated on evolving into smart telcos and creating value- concentrated portfolio. It also reaffirms the commitment of Ooredoo, Zain and TASC to drive growth and value for shareholders.
In a common commentary, Aziz Aluthman Fakhroo, MD and Group CEO, Ooredoo; Bader Al- Kharafi, ZainVice-Chairman & Group CEO; and Iyad Mazhar, Author & CEO of TASC said “ This pioneering deal embarks us on an instigative trip together as it results in the establishment of the region’s largest independent palace company, placing the MENA region on the world telecom palace chart. It also positions the region as an advanced player in the global telecoms geography, and we anticipate wide- ranging positive counteraccusations for the region – from profitable growth and upgraded connectivity to technological advancements and increased global applicability. ”
“ This strategic sale will unleash significant shareholder value through advanced earnings multiples, as well as insure capital effectiveness, optimising balance wastes for our separate companies and creating new possibilities for investors. The deal also demonstrates our common fidelity to supporting the reduction of the region’s carbon footmark, contributing to our vision of reshaping the telecommunications sector by erecting a more sustainable ecosystem and icing a more- connected future for our communities across the region, ” the CEOs concluded.
As an independent palace company, using the combined means of Ooredoo and Zain, TASC will offer Passive structure as a Service( PIaaS) in a cooperation model. This creates unknown openings for all mobile network drivers, offering a capital-effective volition to structure, retaining and managing their own unresistant structure in a cost-effective and environmentally friendly manner. This cooperation model is well- equipped to meet the requirements of other mobile network drivers seeking to reduce costs, lower carbon emigrations, and address the adding demand for spots driven by double number growth in mobile data consumption across the region.
Both Ooredoo and Zain will retain their separate active structure, including wireless communication antennas, intelligent software, and intellectual property with respect to managing their telecom networks.
The anticipated timeline for the completion of this sale contemplates original request conclusions in 2024.
The phased perpetration, acclimatized for each request and clinging to the nonsupervisory terrain, is subject to nonsupervisory blessings, icing a flawless transition of operations. Ooredoo’s palace network in Oman is following a stage-alone process.
Morgan Stanley acted as the exclusive fiscal counsel to the Ooredoo Group, and Citigroup Global requests Ltd acted as the exclusive fiscal counsel to Zain Group and TASC Towers Holding on this sale. DLA Piper acted as the legal counsels for Ooredoo, and both Herbert Smith Freehills( HSF) and Norton Rose Fulbright( NRF) concertedly acted as the legal counsels of Zain Group and TASC Towers Holding. Shearman & Sterling( S&S) acted as the legal counsels of Digital structure means.
Ooredoo will host a virtual Capital Markets Day around the theme “ Upgrade your world – Upgrade your portfolio ” on Wednesday 06 December 2023, from 1000 am to 1300 Doha time. This event is only for investors and judges.
