The Kingdom of Saudi Arabia’s Public Investment Fund (PIF) is acquiring a 51 percent stake in Tawal, the largest telecommunications infrastructure company in the country, valued at 5.85 billion dollars (Rs 4,87,76,45,17,500).
The stake was previously owned by the Saudi Telecommunications Company (STC Group).
Subsequently, PIF and STC Group on Monday, April 22, plan to merge TAWAL and Golden Lattice Investment Company (GLIC), forming the largest Middle East company in the telecommunication infrastructure sector.
The new entity will be 54 percent owned by PIF and 43.1 percent by stc Group, with GLIC minority shareholders holding the remaining issued share capital.
The merged entity will become one of the largest global tower companies, owning around 30,000 mobile tower sites and generating 1.3 billion dollars in annual revenues.
It is expected to significantly enhance consumer experience and network coverage, as well as improve connectivity and mobile internet speeds by consolidating Saudi Arabia’s tower assets.
The transactions are expected to be completed in the second half of 2024.
Raid Ismail, Head of MENA Direct Investments at PIF said: “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.”
The PIF-STC Group agreement aims to unlock the long-term potential of the Kingdom’s telecom infra sector.
This follows TAWAL’s acquisition of infrastructure assets in Bulgaria, Croatia and Slovenia, making this Saudi national champion the region’s largest independent tower company.
