‎stc receives non-binding offer from PIF to acquire 51% of TAWAL, total valuation reaches SAR 21.9 bln

‎stc receives non-binding offer from PIF to acquire 51% of TAWAL, total valuation reaches SAR 21.9 bln

stc received a non-binding offer from the Public Investment Fund (PIF) to acquire 51% of stc's fully-owned subsidiary, Telecommunications Towers Co. (TAWAL), according to a filing to Tadawul.

stc will maintain a 49% stake in TAWAL that is valued at SAR 21.94 billion ($5.85 billion) after excluding debts and cash.

The offer does not represent any binding commitment to both parties, and it remains subject to completing the due diligence and reaching a final and binding agreement.

The agreement is conditional on obtaining all regulatory approvals from relevant authorities, including the approval from the General Authority for Competition (GAC), as well as internal approvals from the respective parties, and any other conditions that may be agreed on by the parties.

The offer comes in line with the company’s strategy related to growth and expansion by retaining ownership in strategic value-added assets, such as infrastructure companies (Towers), as well as benefiting from the return on these assets in growth and expansion. Further, the deal aims to support capital recycling to ensure enhancing the company's ability to invest in new domains and maximize shareholders’ equity sustainably.

The offer is currently being assessed and evaluated. If a final and binding agreement is reached between the two parties, a