Mega Saudi Deal: Unveiling stc's €2.1B Impulse Behind Telefonica Stake!

Saudi Telecom Company (stc) has made a significant investment in Telefonica, acquiring a 9.9% stake in the company for €2.1 billion. This move showcases stc's commitment to expanding its investments beyond its domestic market.

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Increase in Investments

stc has expressed its support for Telefonica's current leadership and strategic direction. The Saudi Arabian operator has clarified that it has no intentions of gaining control or a majority stake in the Spain-based operator group.

As part of the acquisition, stc purchased 4.9% stake through direct share capital and an additional 5% through financial instruments that offer economic exposure to Telefonica.

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Voting rights have been granted to stc for the direct share capital, while approval from regulators is required for similar rights on the remaining stake.

Expanding Interest in ICT Sector

stc's investment in Telefonica is aligned with its strategy to expand its presence in the global ICT sector. In a recent development, stc acquired tower assets worth €1.2 billion in Bulgaria, Croatia, and Slovenia from Unitel Group through its subsidiary Tawal. The company has also expanded its business into Pakistan.

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Mohammed K. A. Al Faisal, the Chairman of stc, highlighted the shared vision and growth prospects between stc and Telefonica. He emphasized the importance of investing in technology and digital infrastructure sectors in promising global markets.

Telefonica expressed its appreciation for stc's friendly approach and support for its management team, strategic direction, and value creation capabilities.

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Overall summary

The investment by stc in Telefonica marks a significant milestone in expanding its global presence and strengthening its position in the ICT sector. This strategic partnership highlights the mutual benefits for both companies in pursuing growth opportunities and technological advancements.