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Oman Telecommunications Company, better known as Omantel, on Tuesday announced that it has entered into an agreement to sell its passive mobile tower infrastructure assets to Helios Towers for $575 million.
Under the agreement, Omantel will sell only its passive mobile infrastructure assets comprised of 2,890 towers in the country and enter into a long-term master services agreement to continue to utilise tower assets.
Against the service fee to be paid to Helios Towers, Omantel said it will eliminate certain direct network operating costs and through the build-to-suit arrangement avoid passive infrastructure capex for new sites. It added that the use of sale proceeds for debt reduction will lead to finance cost savings.
Omantel said it will retain full ownership and control of its active network and spectrum as well as its software, technology and intellectual property with respect to managing its networks.
London-listed Helios Towers is an independent telecommunications infrastructure company with one of the most extensive tower portfolios across Africa.
Talal Said Al Mamari, CEO of Omantel, said: “The sale of our passive tower infrastructure is in line with our strategy to develop world class asset light, strategic and advanced communications networks in Oman and to generate the greatest value and efficiency for the benefit of our shareholders, customers and partners.
“This strategic partnership invites foreign direct investment (FDI) in Oman, supporting Oman as a leading FDI destination in the GCC, while creating jobs and opportunities in the country… We are excited to enter into this transaction and long-term strategic partnership with Helios Towers who have impressed us with their high level of expertise, interest and partnership credentials.”
Kash Pandya, chief executive of Helios Towers, said: “We look forward to supporting Omantel’s growth, and that of the wider Omani mobile market, through our delivery of customer service excellence and world-class infrastructure solutions and services. We view Oman as a very attractive and supportive market for foreign investments, with strong growth and exciting future prospects.
“We will be further investing capital in Oman as we add to the tower count,” he said, adding that the company aims to have over 12,000 towers.
The agreement contemplates the sale of 2,890 mobile towers with a lease and service contract for a period of 15 years with renewal options. Helios Towers has also committed to building a minimum of an additional 300 new towers over the next seven years.
The transaction is expected to conclude in the second half of 2021.
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