The Saudi Telecom Group (stc) said on Tuesday it has received a non-binding offer from the Public Investment Fund (PIF) to buy 51 percent stake in its Telecom Towers Company (TAWAL).
The PIF’s offer is for a total valuation of SAR21.94 billion, SPA reported.
The stc Group said the offer was in line with its growth strategy by re-deploying return on investments from its subsidiaries for expansion and capital recycling to invest in pioneering and diversified areas.
Besides, this will also help in maximising the return on shareholder equity, the group said.
“stc Group continues to achieve its growth and expansion strategy and maximising the group’s assets by increasing and diversifying investments in the telecommunications and information technology sector,” CEO, Olayan Alwetaid said.
“This offer is aligned with the global communications and information technology trends, which conveys the group’s continuous work to build and develop a reliable digital infrastructure to enhance the kingdom’s position as a regional center,” he said.
The stake acquisition offer does not make any obligation on the parties at this stage, but will enable completion of the due diligence work before reaching a final and binding agreement, Alwetaid said.
The offer will also be subject to obtaining all regulatory approvals from the relevant authorities, including the approval of the General Authority for Competition, the internal approvals of the concerned parties and any other conditions that may be agreed upon by both parties, he said.
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