Ooredoo has updated investors on its likely timeline for transferring assets to TASC Towers in its Q3 financial reporting on October 30. Eleven months ago, Ooredoo Group, Zain Group and TASC Towers announced the creation of a region-spanning towerco which will become the largest tower company in MENA region once closed. The operator released more details and likely timeline to investors.
Qatar, Ooredoo's home market, is seen as the most likely first market to close. This would add only approximately 1,500 sites to TASC Towers' current total of 8,700 in Jordan and Iraq, but the symbolism would be significant.
"New TASC" will ultimately become responsible for managing 30,000 towers across six MENA markets; Qatar, Algeria, Tunisia, Kuwait, Jordan and Iraq, with an estimated value of US$2.2bn, but has yet to close a deal with Ooredoo to match its success with Zain.
TASC Towers' markets with Zain and Ooredoo
Ooredoo's chairman HE Sheikh Faisal Bin Thani Al Thani, commented on the results saying "As we strategically evolve into a leading digital infrastructure provider serving the region, we will continue to prioritise efficiency and value creation, employing a flexible, dynamic and forward-thinking approach to power Ooredoo’s future growth."
The new towerco will help underpin Ooredoo's wider strategy. "New TASC" will have a unique structure where Ooredoo and Zain will retain equal shareholdings of 49.3% through an asset and cash equalisation process as Ooredoo’s tower portfolio is much larger than Zain’s. TASC Towers will retain the remaining 1.4% and ensure independent management of the sites.
The operational, financial and regualtory conditions across the six markets are diverse and it makes sense to close the first deal in Ooredoo's home market where it has the best knowledge of processes and people.
Ooredoo announced that it expects to close the Qatar portion of the deal's original within 18 months of the deal's announcement, or around June 2024, with the following countries to follow up to December 2025. The realities of the timelines may differ, but the announcement confirms TowerXchange's reporting that the unique deal is still progressing.
