Riyadh - Mubasher: Mobile Telecommunications Company Saudi Arabia (Zain KSA) has received in-principle approval from the board of Communications and Information Technology Commission (CITC) on the application submitted by Zain KSA, Etihad Etisalat Company (Mobily), and Raidah Investment Company (Al Raidah) and IHS KSA (IHS).
The companies plan to establish a consortium to acquire the telecom towers owned by Mobily and Zain KSA to merge them under a registered commercial entity in Saudi Arabia, named "Towers Company", according to a bourse filing on Wednesday.
The approval allows for unifying these towers under the registered entity to obtain a license for providing infrastructure wholesale services.
CITC’s letter of approval states that Mobily, Zain KSA, and Al Raidah should collectively hold the majority stake in the new entity, while IHS should own a minority of the shares.
In order to obtain the final approval from CITC, the new commercial entity should achieve the regulatory requirements related to licensing and acquisition of the towers.
It is noteworthy to mention that in early July 2020, Zain KSA signed a Memorandum of Understanding (MoU) with Mobily to form a joint committee to prepare a request for proposal for the telecom towers.
