Saudi Arabia’s Public Investment Fund (PIF) has reached an agreement to purchase a 51 percent share in the kingdom’s largest telecommunications infrastructure provider, Telecommunication Towers Company Limited (Tawal), from the Saudi Telecommunications Company (STC Group).
The deal assigns Tawal an enterprise value of $5.85 billion and is a strategic move in the consolidation of telecom infrastructure assets within the country.
In an ambitious move to create the leading entity in the region’s telecom infrastructure sector, PIF and STC Group will merge Tawal with Golden Lattice Investment Company (GLIC), another PIF-majority-owned firm. The combined company will not only be the largest in the Middle East but will also boast an impressive portfolio of 30,000 telecommunications towers and expected annual revenues of around $1.3 billion.
Following the merger, the PIF will hold a 54 percent ownership in the new conglomerate, while STC Group will retain a 43.1 percent stake. The balance will be owned by GLIC’s minority shareholders.
This strategic transaction is anticipated to conclude in the latter half of the year, pending the satisfaction of regulatory approvals and other standard closing conditions.
The acquisition was initially hinted at in October 2022 when PIF made an overture to take a controlling interest in STC’s tower unit. Today’s announcement is a significant milestone for the telecommunications industry in Saudi Arabia and the wider region,
stated Raid Ismail, who helms MENA direct investments at PIF. He emphasized the merger’s alignment with the Saudi Vision 2030 objectives, which focus on diversifying the nation’s economy beyond the oil sector and enhancing digital connectivity.
STC has voiced that this agreement aligns with its strategic imperative to expedite the digital evolution of Saudi Arabia and the surrounding region. In a show of its expanding reach, Tawal had previously ventured outside the Middle East with its acquisition of European telecom tower assets valued at $1.34 billion from United Group, covering locations such as Bulgaria, Croatia, and Slovenia.