Batelco considering tower sale and lease back deal

Batelco is reported to be considering a sale and lease back deal for its tower assets in Bahrain and Jordan, a banking source familiar with the matter said, in a move that would raise funds for potential acquisitions.

Batelco has hired Citigroup to help with the sale process, the banking source said. The deal may generate between U$200 million to US$300 million for the telco.

A formal bidding process is on and Batelco is reported to have received expressions of interest from a number of bidders.

"We are exploring all options to unlock value for our business and the towers is one of those options, but we have not made a decision on whether to lease them back or keep them – we are still going through the deliberations," Peter Kaliaropoulos, Batelco chief executive of strategic assignments, is quoted as saying earlier in the week.

"We have no debt, so extra funds we derive — should we proceed with monetising the towers — will go towards future acquisitions because it reduces the cost of funding for us."