Saudi cellco Mobily and local incumbent STC could reach a tower sharing deal by the end of this year, Mobily CEO Khaled Al Kaf has told Reuters.
Emphasising that both companies are “anxious to complete the deal”, Al Kaf said that the most likely scenario…
Saudi cellco Mobily and local incumbent STC could reach a tower sharing deal by the end of this year, Mobily CEO Khaled Al Kaf has told Reuters.
Emphasising that both companies are “anxious to complete the deal”, Al Kaf said that the most likely scenario was a combination and then spin-off of the two groups’ tower assets. TelecomFinance reported back in February that national security concerns were delaying a potential merger and stake sell-off of the two tower units.
At the time, it was said that bidding consortia GTL/Mubadala, SREI/Zamil Group and TowerShare/Ericsson/Abraaj Capital – which was thought to be working with an unnamed international private equity firm – were ready and waiting for Etisalat and STC to “commence their tower merger”. A source confirmed a circa US$2.5bn merger value, while reports wrote that a 49% or 51% stake was likely to be sold.
Al Kaf was today quoted saying that other operators – presumably referring to number three operator Zain KSA – would eventually be welcome to join in “either as a partner or a customer”. This follows reports earlier in the year that the local regulator was likely to push for inclusion of the third group, in order to ensure a level playing field.
STC has an estimated 11,000 towers, while Mobily has around 7,500. The two have yet to decide the ownership percentages, Reuters wrote.
STC, advised by Morgan Stanley, has for some time been seeking a way to monetise its towers, having held serious discussions with GTL, advised by Standard Chartered and Citi, and SREI, the holding company of another Indian towerco, Quippo, which may not have an external advisor.
Mobily is the local subsidiary of UAE incumbent Etisalat. It and STC reportedly control some 80% of the local mobile market.
