PIF Acquires Majority Stake in stc Group’s Company to Create New Telecommunications Powerhouse
In a groundbreaking move, Saudi Arabia’s Public Investment Fund (PIF) has acquired a 51 percent stake in one of stc Group’s companies, paving the way for the creation of a new telecommunications infrastructure firm.
Merging TAWAL and Golden Lattice Investment Company
PIF will merge Telecommunication Towers Co., also known as TAWAL, with Golden Lattice Investment Company (GLIC) – a majority shareholding of PIF – to establish a new entity that is set to become a global telecommunication powerhouse. With an estimated 30,000 mobile tower sites and projected annual revenues nearing $1.3 billion, the new firm is poised for success.
Ownership Structure and Strategic Vision
The combined entity will be owned 54 percent by PIF and 43.1 percent by stc Group, with GLIC minority shareholders holding the remaining issued share capital. Raid Ismail, head of MENA Direct Investments at PIF, lauded the merger as a significant milestone for Saudi Arabia’s telecommunications sector, emphasizing the importance of connectivity in driving societal and economic growth.
Commitment to Sustainable Growth
Motaz Alangari, Group Chief Investment Officer of stc Group, highlighted the firm’s commitment to sustainable growth through strategic acquisitions and value maximization. The consolidation of TAWAL and GLIC is seen as a stepping-stone to enhancing operational efficiencies and delivering superior experiences for customers.
Revolutionizing Consumer Experience and Network Coverage
The unified entity aims to revolutionize consumer experience and network coverage in Saudi Arabia, with a focus on amplifying connectivity and mobile internet speeds. Operational efficiencies will be driven by innovation, fostering a dynamic telecommunication sector both domestically and internationally.
Building a Stronger Telecommunications Infrastructure Sector
The partnership between PIF and stc Group underscores their commitment to fortifying Saudi Arabia’s telecommunications infrastructure sector and unlocking its full potential. This initiative builds on TAWAL’s recent acquisitions in Bulgaria, Croatia, and Slovenia, solidifying its position as a leading independent tower company in the region. Additionally, stc Group’s recognition as the top workplace in Saudi Arabia by LinkedIn further cements its leadership position in the industry.