In a significant move within the business media landscape, the Saudi Public Investment Fund (PIF) has secured a controlling interest in Telecommunication Towers Company Ltd (TAWAL), procuring a 51% stake from the STC Group. This strategic acquisition is set to establish the preeminent telecom tower company across the region, as announced by both PIF and STC.
The terms of the deal include the amalgamation of TAWAL and Golden Lattice Investment Company (GLIC) to form a new company. This entity is anticipated to operate approximately 30,000 mobile tower sites and generate estimated annual revenues close to $1.3 billion, according to a joint statement from the parties involved.
The ownership structure of the newly created company will feature PIF holding a 54% majority, with STC retaining a 43.1% stake, and the balance held by GLIC’s minority shareholders. The transaction, which includes the sale of the 51% stake for an expected 8.7 billion riyals (equivalent to around $2.32 billion), is slated for completion in the latter half of the current year.
The deal marks a milestone in the establishment of the biggest Tower company in the region with 30k towers valued at USD 6.7bn
, expressed Ziad Itani, a sector expert at Arqaam Capital. Moreover, this development is perceived as particularly beneficial for STC, as the sale price significantly exceeds both the book value and revenue multiples of TAWAL. The influx of 8.7 billion riyals is set to bolster STC’s capacity to engage in further mergers, acquisitions, and investment ventures.
This transaction is indicative of the ongoing consolidation trend within the Middle East telecom tower sector. A recent comparable event occurred in December when major telecom firms Zain Group, Ooredoo, and TASC Towers Holding entered into definitive agreements to merge their tower assets, creating a $2.2 billion entity through a cash-and-share deal.
STC’s CEO, Olayan Mohammed Alwetaid, characterized the transaction as a progressive step in STC Group’s trajectory of expansion, growth, and optimizing investment returns. The group’s international activities have also been notable, with STC Group securing a substantial share in Spain’s Telefonica last December, and TAWAL raising significant funds for acquiring mobile telecommunications infrastructure in several European countries.
The convergence of these business maneuvers not only underscores the growing scale and influence of telecom infrastructure in the region but also highlights the strategic financial initiatives employed by entities such as the Saudi PIF to advance their market positions.