Saudi Telecommunications Company (stc Group) and Saudi's Public Investment Fund (PIF) announced the signing of definitive agreements whereby PIF will acquire a 51 percent stake in Telecommunication Towers Company Limited (TAWAL) from stc Group. According to the agreement, TAWAL's enterprise value is USD 5.85 billion.
Also Read: STC Group’s Subsidiary TAWAL Commences Operations in Europe
Agreement Details
Subsequently, 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, Stc announced on Monday.
Formation of Merged Entity
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. 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.
stc Group said: "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."
PIF said: "Today's 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."
Also Read: Stc Group’s Tawal Expands Into Europe With Acquisition of United Group’s Tower Assets
Expected Benefits
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.
The new merged entity will possess approximately 30,000 mobile tower sites and estimated annual revenues of approximately USD 1.3 billion, as stated by Stc.
As reported by TelecomTalk, this follows TAWAL's acquisition of infrastructure assets in Bulgaria, Croatia, and Slovenia.
