The Public Investment Fund (PIF) and Saudi Telecommunications Company (stc Group) have signed definitive agreements whereby PIF will acquire a 51 percent stake in Telecommunication Towers Company Limited (TAWAL) from stc Group.
TAWAL is the largest telecommunications infrastructure company in Saudi Arabia and one of the largest in the region, with an enterprise value of $5.85 billion per the agreement.
According to the statement, “PIF and stc Group will consolidate TAWAL and Golden Lattice Investment Company (GLIC), in which PIF holds a majority shareholding, into a new merged entity, forming the largest regional company in the telecommunication infrastructure sector.”
The combined new entity will be owned 54 percent by PIF and 43.1 percent by stc Group, with GLIC minority shareholders owning the remaining issued share capital.
Raid Ismail Head Direct Investments – MENA PIF
“The announcement is a significant milestone for the telecommunications industry in Saudi Arabia and the wider region. By bringing together the assets of GLIC and TAWAL, we will establish a consolidated platform on which the telecommunications sector can flourish and give people a better experience to best connect communities and businesses. It is also in line with PIF’s strategy and the Saudi Vision 2030. Fast, reliable, and accessible connectivity is a key enabler of growth and a cornerstone for the society, and these agreements mark a major stride towards a more interconnected digital future.”
The transactions are expected to be completed in the second half of 2024 after obtaining all required regulatory approvals and satisfying other necessary conditions under the agreements.
Motaz Alangari, Group Chief Investment Officer of stc Group, said that, “These agreements are part of stc Group’s continuous endeavor to grow and maximize value most sustainably, by recycling capital while retaining ownership in strategic value-added assets to benefit from the return on these assets and enable expansion into new domains.”
“The announcement is in line with stc Group’s strategy and the pivotal role that the group is playing in accelerating the digital transformation of society and the economy in Saudi Arabia and the region. Combining TAWAL and GLIC is a stepping-stone to consolidating the Saudi tower market and driving further efficiencies and operational excellence to deliver superior experiences and value for customers,” Alangari added.
The new entity is expected to significantly enhance consumer experience and network coverage, as well as improve connectivity and mobile internet speeds by consolidating Saudi Arabia’s tower assets. It will also deliver operational efficiencies, help drive wider innovation in the telecommunication sector across the region and globally, and support the development of a more efficient and frictionless business environment.
Thank you very much for choosing GCC Business News to be an important part of your professional life. You will receive a confirmation e-mail. Please check SPAM or UPDATES folder
