RIYADH: A new telecommunications infrastructure firm is set to be created after Saudi Arabia’s Public Investment Fund acquired a 51 percent stake in one of stc Group’s companies.
PIF will merge Telecommunication Towers Co., also known as TAWAL, with Golden Lattice Investment Company – in which the soveriegn wealth fund holds a majority shareholding – into a new entity.
With an estimated 30,000 mobile tower sites and projected annual revenues nearing $1.3 billion, the new body is expected to emerge as a global telecommunication powerhouse.
The combined new firm 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 of MENA Direct Investments at PIF, hailed the accord as a monumental stride in Saudi Arabia’s telecommunications narrative.
He said: “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 emphasized the pivotal role of robust connectivity in propelling societal and economic growth.
The Group Chief Investment Officer of stc Group, Motaz Alangari, explained that the deals mirror the firm’s commitment to sustainable growth.
Alangari said: “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.”
The consolidation of Tawal and GLIC, Alangari highlighted, 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.”
According to the statement, the unified entity is set to revolutionize consumer experience and network coverage, amplifying connectivity and mobile internet speeds across Saudi Arabia.
Operational efficiencies will be underpinned by a drive for innovation, fostering a dynamic telecommunication sector internationally.
Additionally, the partnership between these entities is expected to generate synergistic effects, fostering an even more favorable business environment and propelling economic growth.
The agreements underscore PIF and stc Group’s resolve to fortify Saudi Arabia’s telecommunication infrastructure sector, unlocking its latent potential.
This endeavor builds on Tawal’s recent acquisitions in Bulgaria, Croatia, and Slovenia, cementing its status as the region’s preeminent independent tower company.
Further showcasing its leadership position, stc Group was awarded the title of the top workplace in Saudi Arabia by the professional networking platform LinkedIn earlier in April.
