PIF, stc Join Forces in Telecom Tower Megamerger
TAWAL is Saudi Arabia's largest telecommunications infrastructure firm.
The Public Investment Fund (PIF) and Saudi Telecommunications Company (stc Group) have sealed a definitive agreement under which the PIF is set to acquire a 51% stake in Telecommunication Towers Company Limited (TAWAL) from stc Group.[1]
TAWAL is Saudi Arabia's largest telecommunications infrastructure firm and one of the largest in the region, with an enterprise value of $5.85 billion, per the agreement.
TAWAL and Golden Lattice Investment Company (GLIC), in which PIF owns a controlling stake, will be combined into a new entity by PIF and stc Group, creating the biggest regional player in the telecommunication infrastructure market.
Post-merger, the new entity will be 54%-owned by PIF, while stc Group retains 43.1%, and GLIC minority shareholders own the residual issued share capital.
Anticipated to finalize in the latter half of 2024, pending regulatory approvals and fulfillment of other contractual conditions, the merger aims to enhance consumer experience, network coverage, and connectivity across Saudi Arabia's telecom landscape, with an estimated 30,000 mobile tower sites and annual revenues projected at $1.3 billion.