PIF And Stc Group Merge To Establish Region's Top Telecom Tower Entity

The Public Investment Fund (PIF) and Saudi Telecommunications Company (stc Group) have made a significant move in the telecommunications sector by signing definitive agreements for PIF to acquire a 51% stake in Telecommunication Towers Company Limited (TAWAL) from stc Group. This acquisition values TAWAL, the largest telecommunications infrastructure company in Saudi Arabia and a leading entity in the region, at an enterprise value of $5.85 billion. The strategic move doesn't stop here; both entities plan to merge TAWAL with Golden Lattice Investment Company (GLIC), where PIF holds a majority share, creating the largest telecommunication infrastructure company in the region.

This newly formed entity will see PIF owning 54% and stc Group 43.1%, with the remaining shares held by GLIC's minority shareholders. The completion of these transactions is anticipated in the second half of 2024, pending all necessary regulatory approvals. Raid Ismail, Head of MENA Direct Investments at PIF, highlighted this announcement as a pivotal moment for the telecommunications industry in Saudi Arabia and beyond. He emphasized the merger's role in enhancing connectivity and fostering a robust platform for the sector's growth, aligning with PIF’s strategy and the objectives of Saudi Vision 2030.

Motaz Alangari, Group Chief Investment Officer of stc Group, echoed Ismail's sentiments, noting the merger's alignment with stc Group’s strategy to drive sustainable growth and digital transformation in Saudi Arabia and the region. The consolidation aims to streamline the Saudi tower market, driving efficiencies, and improving customer experiences and value.

The merger is expected to significantly boost network coverage and connectivity speeds by uniting approximately 30,000 mobile tower sites under one umbrella. This consolidation is poised to create one of the world's largest tower companies, with estimated annual revenues of around $1.3 billion. It aims to enhance consumer experiences, drive innovation in telecommunications across the region and globally, and support a more efficient business environment.

This strategic initiative by PIF and stc Group is designed to fortify the Saudi telecommunication infrastructure sector, unlocking its full potential. It follows TAWAL’s recent expansion into Bulgaria, Croatia, and Slovenia, establishing it as the region’s largest independent tower company. This move is not only about enhancing national digital infrastructure but also about positioning Saudi Arabia as a competitive hub for technology, media, and telecommunications on a global scale, in line with Vision 2030 goals.

With inputs from SPA