(MENAFN) In a significant development for the telecommunications sector, the Saudi Public Investment Fund (PIF) and the Saudi Telecom Company (stc) have announced the finalization of agreements whereby the PIF will acquire a 51 percent stake in the telecommunications towers company, Twal, from the stc group. These agreements mark a strategic move aimed at restructuring the telecom infrastructure landscape in the region.
As per the terms of the agreements, both the PIF and STC Group will merge Twal with Ltice Gold Investment Company, in which the PIF holds a majority stake, to form a new merged entity. This combined entity is poised to emerge as the largest regional leader in telecommunications infrastructure, with the PIF holding a 54 percent share. STC Group will retain a 43.1 percent stake in the merged entity, while minority owners of Ltice Gold Investment Company will retain the remaining issued capital.
The completion of these deals is anticipated in the second half of 2024, pending regulatory approvals and adherence to agreement terms. Raed Ismail, Director of the Direct Investments Department in the Middle East and North Africa at the Saudi Public Investment Fund, underscored the significance of these agreements for the telecommunications sector not only within the Kingdom but also across the wider region.
Ismail highlighted that the consolidation of assets from Twal and Ltice will establish a robust foundation for the telecommunications sector to thrive, enhancing service delivery for customers and facilitating greater connectivity for businesses and communities. This strategic move aligns with the objectives of the Public Investment Fund and the Kingdom's Vision 2030, signaling a step forward towards a more interconnected digital future.
The agreements signify a pivotal moment in the evolution of the telecommunications industry, paving the way for enhanced infrastructure capabilities and improved service offerings. By leveraging synergies between Twal and Ltice, the merged entity is poised to drive innovation and foster a more interconnected digital ecosystem, ultimately contributing to economic growth and societal development in line with the Kingdom's long-term vision.
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