Saudi Arabia’s Public Investment Fund (PIF) and Saudi Telecommunications Company (stc Group) announced the signing of definitive agreements whereby PIF will acquire a 51 percent stake in Telecommunication Towers Company Limited (TAWAL) from stc Group.
TAWAL is the largest telecommunications infrastructure company in Saudi Arabia and one of the largest in the region, with an enterprise value of nearly $6 billion per the agreement. Subsequently, PIF and stc Group will consolidate TAWAL and Golden Lattice Investment Company (GLIC), in which PIF holds a majority shareholding, into a new merged entity, forming the largest telecom infrastructure company in the Middle East and North Africa (MENA) region.
The combined new entity will be owned 54 percent by PIF and 43.1 percent by stc Group, with GLIC minority shareholders owning the balance. The agreements mark PIF and stc Group’s ambition to integrate and strengthen the Saudi telecommunications infrastructure sector to unlock its consolidated potential. This follows TAWAL’s acquisition in 2023 of infrastructure assets in Bulgaria, Croatia, and Slovenia, Inside Towers reported. The new merged entity will own and operate a total of around 30,000 mobile tower sites with estimated annual revenues of roughly $1.3 billion.
“By bringing together the assets of GLIC and TAWAL, we will establish a consolidated platform on which the telecommunications sector can flourish and give people a better experience to best connect communities and businesses,” comments Raid Ismail, Head of MENA Direct Investments at PIF. “It is also in line with PIF’s strategy and the Saudi Vision 2030. Fast, reliable, and accessible connectivity is a key enabler of growth and a cornerstone for the society, and these agreements mark a major stride towards a more interconnected digital future.”
In spinning off its towers, stc Group aims to recycle capital while retaining stakes in strategic assets. Motaz Alangari, stc Group, Chief Investment Officer says, “Combining TAWAL and GLIC is a stepping-stone to consolidating the Saudi tower market and driving further efficiencies and operational excellence to deliver superior experiences and value for customers.”
Consolidating Saudi Arabia’s tower assets into a new entity is expected by analysts to significantly enhance consumer experience and network coverage as well as improve connectivity and mobile internet speeds while delivering operational efficiencies.
The transactions are expected to be completed in the second half of 2024, subject to requisite regulatory approvals, and terms and conditions under the agreements.
By John Celentano, Inside Towers Business Editor
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