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Helios Towers Oman agrees minority stake with Rakiza

Helios Towers, the independent telecommunications infrastructure company, announced last week that that it has entered into an agreement pursuant to which Rakiza Telecommunication Infrastructure LLC (Rakiza), a wholly owned subsidiary of Oman Infrastructure Fund (Rakiza Fund), will purchase a 30 per cent minority stake in the newly incorporated holding company for Omantel Telecommunications Company’s passive infrastructure assets in the Sultanate of Oman, with Helios Towers purchasing the remaining 70 per cent.

This partnership will further assist the expansion of telecommunications infrastructure across Oman, combining the proven operational expertise of Helios Towers with a local partner which has extensive knowledge of the market and dedicated focus on developing infrastructure across the Middle-East.

The Company expects that the acquisition will close in or around the end of Q2 2022, subject to satisfaction of outstanding closing conditions.

Tom Greenwood, CEO of Helios Towers, said: "We are delighted to be partnering with Rakiza, who offers Helios Towers a wealth of local knowledge as we enter the Omani market and seek to strengthen our foothold in the Middle East. Rakiza not only offers a highly experienced management team through its deep public and private sector expertise, but it is also closely aligned to our goal of driving sustainable value creation through infrastructure and connectivity."

Muneer al Muneeri, Chairman of Rakiza Fund, added: "Helios Towers has an excellent track record of generating growth in its many markets and we are delighted to partner with a leading telecommunications infrastructure business that has a proven history of delivering connectivity and advancing telecommunications in its markets. This, combined with our expertise and strong local network underpins our confidence that the Omantel transaction will be a positive development for us and Oman."

On May 11, 2021, Helios Towers and Omantel entered into an agreement for Helios Towers to acquire Omantel's passive tower infrastructure portfolio of 2,890 sites (the "Target Assets"), for a cash consideration of $575 million and representing an enterprise value of $615 million, including the Group's estimate of transaction costs and capitalised ground leases of $40 million.

Under the agreement entered into last week, Helios Towers will now purchase a 70 per cent interest in the newly incorporated holding company for the Target Assets with Rakiza purchasing the remaining 30 per cent. The consideration (which remains unchanged from the original acquisition terms) will be paid 70 per cent by Helios Towers and 30 per cent by Rakiza, adjusted down pro-rata by potential local third party debt raised. Helios Towers will retain operational control of the Target Assets and the Target Assets will be consolidated in its financial statements from completion.

Through the transaction, Helios Towers will establish its presence in the Middle-East region, becoming a leading independent tower infrastructure provider in Oman. As previously disclosed, the Target Assets are expected to deliver revenues of $59 million and Adjusted EBITDA of $40 million in the first full year of operations with further growth anticipated through colocation lease-up and 300 build-to-suit sites committed over the next seven years, for which $35 million growth capex is expected to be invested.

The Group intends to finance the acquisition through its existing cash and available bank facilities.



Source: https://www.omanobserver.om/article/1120632/business/economy/helios-towers-oman-agrees-minority-stake-with-rakiza

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