The Public Investment Fund (PIF) and stc Group have reached significant agreements that will reshape the telecommunications landscape in Saudi Arabia and the wider region:
- PIF is set to acquire a 51% stake in Telecommunication Towers Company Limited (TAWAL) from stc Group, consolidating TAWAL’s position as the largest telecommunications infrastructure company in Saudi Arabia and one of the region’s largest, with a valuation of $5.85 billion.
- Subsequently, TAWAL and Golden Lattice Investment Company (GLIC), majority-owned by PIF, will merge to form a new entity, becoming the leading regional player in the telecommunication infrastructure sector.
The combined entity will be predominantly owned by PIF, with stc Group maintaining a significant stake, and GLIC minority shareholders retaining the remaining capital. Pending regulatory approvals and fulfillment of other conditions, the transactions are expected to conclude in the latter half of 2024.
Raid Ismail, Head of MENA Direct Investments at PIF, emphasized the transformative impact of this consolidation, aligning with PIF’s strategic vision and Saudi Vision 2030. Improved connectivity is highlighted as pivotal for societal and economic growth.
Motaz Alangari, Group Chief Investment Officer of stc Group, underscored the strategic nature of these agreements, enabling sustainable growth and expansion into new domains while driving digital transformation.
The merged entity is poised to enhance consumer experience, expand network coverage, and accelerate digital innovation, thus bolstering Saudi Arabia’s telecommunication infrastructure sector and supporting Vision 2030 objectives.
With approximately 30,000 mobile tower sites and estimated annual revenues of $1.3 billion, the new entity solidifies its position as one of the world’s largest tower companies.
This announcement reinforces the commitment of PIF and stc Group to fortify Saudi Arabia’s digital infrastructure, aligning with Vision 2030’s goals and fostering a globally competitive technology, media, and telecommunications sector.
