Home Science & Technology Jazz is selling all its Tower assets in Pakistan

Jazz is selling all its Tower assets in Pakistan

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Wireless digital telecommunications network Veon (Jazz’s parent company) is in talks to sell its energy assets in Pakistan, a report said on Tuesday. Veon owns between 10,000 and 12,000 towers in Pakistan, while each building costs approximately $60,000 to $80,000 depending on interest rates.

The TPL-TASC group was revealed to be the most likely buyer after beating off rivals including other telecommunications companies. If the towers are sold, it will be Pakistan’s most significant deal since 2011. Discussions are ongoing and the companies could still walk away from the deal.

Veon CEO Kaan Terzioglu said in an interview last month, without naming the bidder, that the Jazz Towers sale was “very close to completion”. According to the report, a division of Saudi Telecom Co. and Pakistani conglomerate Engro were also among the bidders for the assets.

Veon is a telecommunications network established in Moscow back in 1992. It has since grown into a global communications giant based in the Netherlands. According to the record, it has more than 127 million customers in nine countries.

Undoubtedly, at the moment the company is the largest operator in Russia and has just started the sale process. However, due to the various consequences of the war in Ukraine, the company’s share price has fallen by two-thirds this year. Not only that, but last year Veon sold 15,000 towers in Russia for nearly $970 million to Service Telecom LLC.

Also, Veon’s Group Chief Executive Officer Kaan Terzioglu is reported to have said that the sale process is very close to completion. According to the report, Saudi Telecom Co.unit, a consortium of Pakistan’s TPL Corp and UAE-based TASC Towers, and Pakistani conglomerate Engro are among the bidders.

During meetings with various stakeholders of the ICT industry, the VEON delegation also emphasized that a healthy and stable telecommunications sector, the foundation of the country’s digital ecosystem, feeds almost all sectors of the economy and is a prerequisite for consistently improving the quality of services for users.

However, the financial health of the telecommunications industry has recently been affected by unprecedented increases in the cost of operations: primarily fuel, electricity, interest rates, ever-increasing US dollar spectrum charges and, more recently, severe flood damage to critical digital infrastructure . to such an extent that it is now threatening the very survival of the telecommunications sector.

However, spokespersons for Veon and Saudi Telecom declined to comment. The TPL-TASC consortium and Engro representatives did not immediately respond to a request for comment. Neither company has responded to the purchase of the towers or issued a statement regarding the potential deal.

Also, it is important to note that TPL REIT Management Company Limited is a subsidiary of TPL Properties Limited. We decided to enter into strategic cooperation with the company TASC towers from the UAE. To acquire infrastructure company Telecom Tower through an Infrastructure Real Estate Investment Trust (REIT).

TPL REIT Management Company Limited is wholly owned by TPL Properties Limited. TPL RMC and TASC, as a consortium, participated in the auction to acquire the maximum number of shares of Telecom Tower Infrastructure Company through Infra REIT. This aim was to obtain all necessary permits and approvals from regulatory authorities.

In 2017, Veon and Global Telecom Holding (GTH) agreed to sell their towers business in Pakistan for nearly $940 million. Under the deal, Tanzanite, an energy company run by Malaysian medical group and Dawood Hercules Corporation, will acquire Veon and GTH’s Pakistan subsidiary. Including Jazz and its wholly owned tower company Deodar, which had more than 13,000 Jazz telecom towers in its portfolio. Unfortunately, the companies are waiting to see if they can get the necessary regulatory approvals to close the potential deal.

Last year, Veon sold more than 15,000 towers in Russia to Service-Telecom LLC for approximately $970 million. Terzioglu told Bloomberg News in August that the company has about 30,000 more towers to sell and is in talks with potential buyers in Pakistan, Bangladesh, Kazakhstan, Uzbekistan and Ukraine.

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