A three-way partnership deal will enable Qatar’s Ooredoo (ORDS.QA) to offload capital-intensive infrastructure but only by offering Kuwait’s Zain (ZAIN.KW) favourable deal terms.
Ooredoo and Zain are creating a regional powerhouse with an estimated enterprise value of $2.2 billion to be managed by Zain-backed TASC Towers Holding.
The $8.9 billion Ooredoo and $6.9 billion Zain will own 49.3% each, with the rest going to TASC.
But Zain is paying an average price of $73,000 per tower, 9.5% less than the average price per tower in previous deals, according to JPMorgan analysts.
The Kuwaiti group will also call the shots as the founders of Dubai’s TASC Towers Holding – which Zain controls with an 83.47% stake – will manage the new entity.
Persons:
Qatar’s, Kuwait’s Zain, Zain, Ooredoo, Dubai’s, Pamela Barbaglia, Neiman Marcus, Francesco Guerrera, Oliver Taslic
Organizations:
Reuters, TASC, Bloomberg, JPMorgan, X, Saks, Thomson
Locations:
Algeria, Tunisia, Iraq, Jordan, Saudi, Kuwaiti, Hong Kong