RIYADH: Zain KSA saw its shares jump 4.51 percent, after it transferred ownership of its subsidiary to the Public Investment Fund for the nominal amount of SR10,000 ($2666), renaming it The Golden Lattice Investment Co.
Zain’s shares open the week at SR12.98, as of 10:24 a.m. Saudi time.
The PIF previously joined with Prince Saud bin Fahad and Sultan Holding Co. in February to acquire an $807 million stake in Zain KSA’s tower infrastructure, a bourse filing showed.
The Communications and Information Technology Commission on Sept. 7 issued no-objection voting to the agreement between the parties to take over at least 8,069 of the telecom tower sites owned by Zain KSA.
The company, formally known as Mobile Telecommunication Co., will transfer 80 percent of its share capital to the acquirers upon completion of the deal.
As per the offer with the PIF, the company will grant the sovereign wealth fund the right to buy the remaining 20 percent stake at a certain amount.
The three deals will see the telecom firm sell its towers infrastructure comprising 8,069 towers while retaining wireless communication antennas, software, technology, and intellectual property.
The transaction will result in SR1.1 billion from the transfer of towers over the next 18 months to the financial closing.