Saudi Wealth Fund Makes $484 Million Bid for Mobile Towers - Bloomberg
Saudi Arabia’s sovereign wealth fund has made a $484 million bid for a controlling stake in the mobile phone towers unit of the kingdom’s second-largest telecom company.
The Public Investment Fund offered to buy a 60% stake in Zain Saudi’s towers infrastructure in a deal that would value the unit at 3 billion riyals ($807 million).
It also received bids from Prince Saud Bin Fahad and Sultan Holding Co. to acquire an additional 10% stake each. Mobile Telecommunications Co. Saudi Arabia, as Zain Saudi is formally known, would own the remaining 20%.
“The agreement would result in unlocking cash invested in the fixed assets of the company, and this liquidity may be used to pay down debt which would reduce financial charges,” said Muhammad Faisal Potrik, head of research at Riyad Capital. There would be a corresponding rise in annual lease payments for these towers, but the net impact is expected to be “positive” for Zain Saudi, he said.
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