National security concerns are delaying a potential stake sale by a yet to be formed STC/Mobily Saudi tower tie-up, TelecomFinance understands.
Meanwhile, bidding consortia GTL/Mubadala, SREI/Zamil Group and TowerShare/Ericsson/Abraaj Capital – which is…
National security concerns are delaying a potential stake sale by a yet to be formed STC/Mobily Saudi tower tie-up, TelecomFinance understands.
Meanwhile, bidding consortia GTL/Mubadala, SREI/Zamil Group and TowerShare/Ericsson/Abraaj Capital – which is thought to be working with an unnamed international private equity firm – are ready and waiting for Etisalat and STC to “commence their tower merger”, it has been said.
The three infrastructure suitors have each added a local financial partner in order to smooth the way in terms of local relationships, finance and infrastructure knowledge.
A source confirmed the US$2.5bn merger value reported yesterday by Reuters, which wrote that a 49% or 51% stake was likely to be sold.
STC, advised by Morgan Stanley, has been running a tower sale for the best part of a year. The frontrunners for that deal were GTL, advised by Standard Chartered and Citi, and SREI towers unit Quippo, which may not have an external advisor.
Reuters yesterday cited an analyst that local regulators might force any combined STC/Mobily tower group to add Zain to an alliance, in order to ensure a fair market, but this was today described as speculative at this point.
Zain’s 25% stake in its Saudi Arabian business is currently on the block, since its sale is one of the key conditions for Etisalat’s agreed acquisition of its Kuwait-based rival.
