Saudi Arabia’s PIF and stc Group to create Middle East’s biggest telecom infrastructure company

Saudi Arabia’s PIF and stc Group to create Middle East’s biggest telecom infrastructure company

Dubai: Saudi Arabia's wealth fund PIF is buying a 51 per cent stake in Tawal, the biggest telecommunications infrastructure company in Saudi Arabia and one of the largest such in the region with an enterprise value of $5.85 billion.

The stake was previously held by Saudi Telecommunications Company (stc Group).

PIF and stc Group will now consolidate Tawal and Golden Lattice Investment Company (GLIC) – in which PIF holds a majority shareholding – into a new merged entity. This forms the 'largest regional company in the telecommunication infrastructure sector'.

The new entity will be owned 54 per cent by PIF and 43.1 per cent by stc Group, with GLIC minority shareholders owning the remaining issued share capital.

The transactions are expected to be completed in the second half of 2024.

According to Raid Ismail, Head of MENA Direct Investments at PIF, “Today's announcement is a significant milestone for the telecommunications industry in Saudi Arabia and the wider region.

"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. It is also in line with PIF’s strategy and the Saudi