Qatar’s Ooredoo plans to carve out telecom tower unit this year
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Qatar’s Ooredoo plans to carve out telecom tower unit this year

Qatar’s Ooredoo plans to carve out telecom tower unit this year

The firm received interest from over 50 regional and international bidders and is currently in the final round of talks

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Qatari telecom operator Ooredoo expects to carve out its portfolio of tower networks this year, in a transaction that has reportedly drawn interest from suitors including Saudi Arabia’s wealth fund and American Tower.

The firm received interest from over 50 regional and international bidders and is currently in the final round of talks, chief executive officer Aziz Aluthman Fakhroo told Bloomberg TV in an interview. “We’re hoping to announce something before the end of the first half of this year.”

Ooredoo said in September it will carve out its portfolio of almost 20,000 towers as part of a shift to an asset-light model. The state-controlled operator last year sold its Myanmar business for an enterprise value of $576m and is also considering carving out its data center unit.

Saudi Arabia’s Public Investment Fund, American Tower, IHS Holding and Helios Towers were among suitors weighing a bid for the tower assets, which could be valued at $3bn to $5bn, Bloomberg reported in November.

Ooredoo – Investments and debt

Ooredoo is committed to investing up to $1bn in its data centers over the next five years to grow its capacity, Fakhroo said. “We’re bringing in investors to help us accelerate this catalyst of growth.”

Data centres typically attract strong interest from investors as they are seen to generate stable returns and growth amid increasing reliance on technology. Unlike the potential towers sale, Ooredoo plans to invest in the data centres by potentially bringing in external investors, Bloomberg reported in October.

The phone operator on Tuesday repaid close to $1bn of bonds and $500m of a revolving credit facility, the largest debt repayment in its history, Fakhroo said. “We have no major debt maturity until 2025, so we think we are extremely well-positioned to weather any future rate hikes.”

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