PIF secures controlling stake in stc Group's subsidiary TAWAL with 51 percent acquisition

4/22/2024 4:31:44 AM

(MENAFN) Saudi Arabia’s Public investment Fund (PIF) has acquired a controlling 51 percent stake in one of stc Group’s subsidiaries, Telecommunication Towers Co. (TAWAL), marking a significant move in the country's telecommunications sector. This Acquisition will see PIF merging TAWAL with Golden Lattice Investment Company, in which the sovereign wealth fund already holds a majority stake, to establish a new telecommunications infrastructure firm.

The newly formed entity is poised to become a global powerhouse in the telecommunications industry, with an extensive portfolio of approximately 30,000 mobile tower sites and projected annual revenues reaching around USD1.3 billion. Under the ownership structure, PIF will hold a majority share of 54 percent, while stc Group will retain 43.1 percent ownership. The remaining portion of the issued share capital will be held by minority shareholders of Golden Lattice Investment Company.

Raid Ismail, the head of MENA Direct Investments at PIF, hailed the agreement as a landmark development in Saudi Arabia’s telecommunications landscape. This strategic move is expected to fuel further growth and innovation in the sector, driving economic advancement and technological progress in the kingdom.

He stated: “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.”

Ismail underscored the crucial significance of strong connectivity in driving both societal progress and economic development.

Motaz Alangari, the Group Chief Investment Officer of stc Group, elaborated that these agreements reflect the company's steadfast dedication to fostering sustainable growth.

Alangari declared: “These agreements are part of stc Group’s continuous endeavor to grow and maximize value in the most sustainable manner 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.”

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