Zain propose tower divestment in three markets
TowerXchange analyses tower markets in KSA, Kuwait and South Sudan and highlights prospective bidders
TowerXchange understands that Zain has commenced a process to divest towers in three countries: The Kingdom of Saudi Arabia, Kuwait and South Sudan. The deal was rumored to encompass approximately 8,000 towers, but that count seems high given the number of towers Zain reportedly owns in the markets concerned. Depending on the balance of cash released versus opex reduction, a tower sale could attract between US$200-300k per site. Citi are believed to be leading the process.
In terms of the deal structure being proposed by Zain, we understand it is a sale and leaseback, but it’s not yet clear whether Zain wish to retain some equity.