PIF considers merging stc, Zain KSA infrastructure to set up major cell tower firm: Report

Logo of the Public Investment Fund (PIF)

The Public Investment Fund (PIF) is studying to merge the infrastructure of stc and Mobile Telecommunication Company Saudi Arabia (Zain KSA) to establish the largest cell tower company in the Kingdom, well-informed sources told Bloomberg.

When the transaction is completed, a company with 23,000 towers will be established, which the PIF will likely list on the Saudi Exchange (Tadawul), the sources said.

They added that deal will reduce overlap in places where both companies own towers, which makes investment in boosting coverage and mobile internet speeds more efficient.

In September, Zain KSA's board of directors approved the non-binding offers received from the PIF, Prince Saud bin Fahad bin Abdulaziz, and Sultan Holding Co., to acquire 60%, 10%, and 10% stakes, respectively, in its tower infrastructure, Argaam earlier reported.

The offers estimated the value of 8,069 towers at SAR 3.026 billion ($807 million).

TAWAL, Saudi Arabia’s first telecommunications towers company, owns a portfolio of over 15,000 towers across the Kingdom, CEO Mohammed Alhakbani earlier told Argaam.

He added that the Kingdom has more than 35,000 telecom towers, of which TAWAL accounts for 45%.