Telecom company Zain plans to buy the remaining 70% of IHS Kuwait, making it the full owner with 100% ownership
Zain Group, a telecom operator, announced on Monday that it has made a final agreement to buy the remaining 70% of IHS Kuwait, increasing its ownership from 30% to 100%. The deal values the remaining shares at $134 million.
IHS Kuwait Acquisition
Under the agreement, IHS Kuwait, a company that owns 1,675 telecom towers and manages about 700 more in Kuwait, will continue offering tower infrastructure services in the country.
Bader Al Kharafi, Zain’s vice chairman and group CEO, said the deal will support the company’s strategy to expand its digital infrastructure in the region, improve efficiency, and benefit shareholders.
He also mentioned that this acquisition complements their recent agreement with Qatar’s Ooredoo to merge and manage around 30,000 towers.
“Our goal is to provide shared infrastructure services that help reduce the carbon footprint in the Middle East and North Africa (MENA) region while advancing its digital future,” Al Kharafi said.
The deal is still subject to government and regulatory approvals before it is finalized.
Zain Group received financial advice from FTI Capital Advisors, M&A support from PwC, and legal counsel from DLA Piper (international) and GLA & Company (local).
Zain Financial Results
Zain’s revenue increased by 2% compared to last year, reaching $4.7 billion in the first nine months of the year. The company performed well in Kuwait, Saudi Arabia, Iraq, Jordan, and Bahrain during the third quarter.
Revenue from data services grew by 1% to $1.8 billion, making up 38% of the total revenue. Business services (Enterprise) revenue increased by 6%, including B2B Mobility.
Financial technology (Fintech) services saw a 13% rise in revenue, while ZainTECH’s revenue jumped 92% thanks to the inclusion of STS Arabia.
Zain’s Chairman, Osamah Al Furaih, highlighted the company’s focus on investing in new technologies, upgrading networks, and improving digital infrastructure. He stated that these efforts, along with providing excellent customer experiences, have made Zain a preferred digital service provider for individuals, businesses, and governments in the region.
For the fourth year in a row, Zain distributed interim dividends to shareholders, totaling $141.5 million (KD43.3 million).
Big number
As of September 30, Zain had 47.2 million active customers in the Middle East and Africa.
Published: 3rd December 2024
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