The Public Investment Fund (PIF) and Saudi Telecommunications Company (stc Group) announced a significant agreement. PIF will acquire a 51% stake in Telecommunication Towers Company Limited (TAWAL) from stc Group. TAWAL is the largest telecommunications infrastructure company in Saudi Arabia. This deal will create the biggest regional company in the telecommunication infrastructure sector.
Following the acquisition, PIF, and stc Group will combine TAWAL with Golden Lattice Investment Company (GLIC), where PIF holds a majority stake. This merger will form a new entity, owned 54% by PIF, 43.1% by stc Group, and the remaining by GLIC minority shareholders. The completion of the transactions is expected in the second half of 2024 after obtaining the necessary approvals.
This collaboration is a major milestone for the telecommunications industry in Saudi Arabia and the wider region. By combining assets, they aim to establish a platform that fosters growth in the sector and enhances connectivity for businesses and communities. This aligns with PIF’s strategy and Saudi Vision 2030, recognizing the importance of fast and reliable connectivity for economic growth and societal well-being.
Both PIF and stc Group believe this agreement aligns with their respective strategies. PIF unlocks the consolidated potential of the Saudi telecommunication infrastructure sector. For stc Group, it allows capital recycling while retaining ownership in valuable assets and enabling expansion into new areas.
The new entity is expected to significantly improve consumer experience, network coverage, and mobile internet speeds. It will also lead to operational efficiencies, drive innovation in the telecommunication sector, and support a more efficient business environment.
This agreement signifies PIF and stc Group’s ambition to strengthen the Saudi telecommunication infrastructure sector. The new merged entity will possess approximately 30,000 mobile tower sites and become one of the largest tower companies globally with estimated annual revenues of $1.3 billion. This deal ensures the resilience and international competitiveness of a critical national digital infrastructure asset and aligns with the goals of Vision 2030. It also strengthens both PIF’s and stc Group’s strategies to position Saudi Arabia as a competitive hub for the technology, media, and telecommunication sectors.
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