August 29 (SeeNews) - Saudi Arabian ICT infrastructure firm Tawal International Holding has officially started operating on the European market after completing its acquisition of over 4,800 mobile towers of United Group in Bulgaria, Croatia and Slovenia, the buyer's parent company, stc Group, said.
The purchase, which is the second stage in Tawal's expansion plan after the launch of operations in Pakistan last year, brings the total portfolio of the mobile infrastructure company to over 21,000 towers in five countries, stc Group said in a press release on Monday. The completion followed the receipt of all regulatory approvals after the deal was agreed in April.
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Tawal will be looking to tap into European markets through the roll-out of 5G networks and adaptation of mobile services for all mobile operators whilst deploying significant investments, best practices and new products.
In a separate statement, United Group said that the cash sale, which closed on August 24, was worth 1.22 billion euro ($1.3 billion) on a cash free and debt free basis.
The Southeast Europe-focused media group's net proceeds from the disposal, or 1.218 billion euro, will be used to repay two tranches of senior secured debt, of 525 million and 550 million euro, respectively, due in 2024 and 2025. The vendor also stands to receive an additional payment of 29 million from the divested unit shortly after the close. Once the debt is repaid, the group will receive a liquidity boost of 168 million euro in total.
United Group also said it will remain the anchor tenant of the tower and rooftop infrastructure assets through a long-term agreement with Tawal, initially for a term of 20 years with subsequent automatic renewal every eight years. United Group will also sign a service level agreement with Tawal to ensure its continued use of the telecoms towers.
"This is a very attractive deal for United Group and one that enables us to unlock capital from existing non-core infrastructure assets while capitalising on attractive valuations in the towers sector," United Group CEO Viktoria Boklag said.
In Bulgaria, United Group owns mobile operator Vivacom as well as TV, online and radio company Nova Broadcasting Group. The Netherlands-based telecoms group also owns mobile, broadband and cable TV operator Telemach in Croatia and in Slovenia, where it also provides digital broadcasting services through Total TV.
($ = 0.9243 euro)