Telecommunications operator Zain said yesterday there were no fresh developments in its plans to sell mobile transmitter towers in Saudi Arabia and its domestic market Kuwait.
Citing sources familiar with the matter, Reuters reported on March 16 that Zain was narrowing the field of potential bidders for its towers in those two countries.
Zain’s shares have gained 1.3% since the Reuters story was published, while Zain Saudi’s stock is up 23%.
“There are no new developments in this regard,” Zain said in a brief statement to Kuwait’s bourse. “Zain group is always looking for opportunities to add value and seeks out best investment opportunities to support or benefit shareholders.”
In a phone call with analysts last November, chief executive Scott Gegenheimer said: “We’re currently running a process for the sale of our towers in both Saudi and Kuwait markets.”
The likely price for any deal is not known, but four tower deals agreed in more populous India in 2009-12 valued towers at $60,000-103,000 each, a report by consultants AT Kearney shows.
Taking the lower end of this range, Zain Saudi could expect to raise around $500mn from selling its towers; little new tower infrastructure is required in Saudi Arabia, where mobile penetration is 180% and 4G is readily available, so there is less growth potential for tower companies.