PIF Acquires Majority Stake in Saudi’s TAWAL for $5.85 Billion
Saudi Arabia’s Public Investment Fund (PIF) will acquire a 51% stake in TAWAL from stc Group for $5.85 billion, expanding its telecommunications infrastructure.
2 min
Saudi Arabia’s Public Investment Fund (PIF) has entered into definitive agreements with Saudi Telecommunications Company (stc Group) to acquire a 51% stake in Telecommunication Towers Company Limited (TAWAL) for an enterprise value of $5.85 billion.
TAWAL, renowned as the largest telecommunications infrastructure company in the region, will soon become part of a major strategic overhaul involving PIF and stc Group.
The plan involves merging TAWAL with Golden Lattice Investment Company (GLIC), where PIF holds a majority share. This merger is expected to create the largest regional entity in the telecommunication infrastructure sector, with the new entity being 54% owned by PIF and 43.1% by stc Group, while the remaining shares will be held by GLIC minority shareholders.
Completion of these transactions is anticipated in the second half of 2024, pending all necessary regulatory approvals. Raid Ismail, Head of MENA Direct Investments at PIF, highlighted the significance of this move for the telecommunications industry in both Saudi Arabia and the wider region.
He noted that this consolidation would enhance the telecommunications sector’s ability to connect communities and support business growth, aligning with PIF’s strategy and the goals of Saudi Vision 2030.
Motaz Alangari, Group Chief Investment Officer of stc Group, echoed these sentiments, stating that the agreements are pivotal in stc Group’s efforts to foster growth and maximize sustainable value by recycling capital while retaining ownership in strategic assets. This strategy, according to Alangari, supports stc Group’s role in accelerating digital transformation in Saudi Arabia and the broader region.
The newly formed entity is set to enhance consumer experience and network coverage significantly, improving connectivity and mobile internet speeds by consolidating Saudi Arabia’s tower assets.
This development is not only expected to drive operational efficiencies but also foster wider innovation in the telecommunication sector globally. The new merged entity will own approximately 30,000 mobile tower sites and is projected to become one of the largest tower companies worldwide with estimated annual revenues of about $1.3 billion.
This strategic move follows TAWAL’s acquisition of infrastructure assets in Bulgaria, Croatia, and Slovenia, thereby extending its reach and reinforcing its position as a regional powerhouse in the telecommunications tower industry.
The consolidation is part of a broader ambition by PIF and stc Group to strengthen and integrate the Saudi telecommunication infrastructure sector, thereby enhancing Saudi Arabia’s capabilities as a globally competitive hub for technology, media, and telecommunications.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
The agreement offers innovative and customer-centric solutions to CBD cardholders across all segments
3 min
Commercial Bank of Dubai (CBD), one of the leading banks in the United Arab Emirates, has announced an exclusive multi-year strategic partnership with Visa, a global leader in digital payments, for credit and debit cards. This partnership aims to enhance digital payment adoption in the UAE, offering innovative and customer-centric solutions to CBD cardholders across all segments.
The agreement was signed by Khaled Al Hammadi, General Manager of the Personal Banking Group at CBD, and Salima Gutieva, Visa’s Vice President and Country Manager for the UAE.
The signing ceremony was attended by Dr. Bernd van Linder, CEO of Commercial Bank of Dubai, and Andrew Torre, Visa’s Regional President for Central and Eastern Europe, the Middle East, and Africa.
As part of this partnership, CBD and Visa are also partnering to establish a ‘Centre of Excellence’ powered by Visa Consulting and Analytics (VCA), dedicated to accelerating and simplifying customer’s payment experiences. By leveraging core data assets and deriving insights, VCA will formulate actionable recommendations that aim to address business challenges and offer personalized solutions to customers. This collaborative approach will support CBD’s goals of market expansion, product design, customer acquisition, and engagement improvement, focusing on areas such as encouraging card usage through engaging and rewarding gamification, positioning CBD Visa cards as the top choice in digital wallets, enhancing cross-border transactions and payment speed, and expanding our footprint through strategic digital merchant collaborations.
Moreover, CBD and Visa are redefining the marketing landscape for the CBD card business through initiatives such as leveraging advanced technology to enhance digital customer onboarding experiences, sponsoring high-profile events like the Olympics, launching the Visa Instalment Solution in the UAE to introduce flexible payment options for our customers directly through Point-of-Sale (POS) machines, and offering comprehensive local and international benefits, focusing on the complete lifecycle of new and existing CBD Visa cardholders.
Dr. Bernd van Linder, Chief Executive Officer, Commercial Bank of Dubai, said, “We are excited to build on our partnership with Visa as we continue our mission in providing innovative and customer-centric payment solutions. The financial sector landscape is changing dramatically with technological disruption, emergence of new players, as well as constantly evolving customer expectations. Our collaboration with Visa will help us in developing new business models and providing more personalized customer offerings. At CBD, we are committed to playing a leading role in the digitization of the financial payments sector and introducing innovative financial solutions that meet our customers’ evolving needs and deliver seamless banking experiences.”
Khaled Al Hammadi, General Manager, Personal Banking Group at CBD, further added, “We are proud of this extended and strategic partnership with Visa. With Visa’s global expertise and CBD’s dedication to meeting the needs of our customers, we aim to provide a more seamless payment solution, delivering a variety of competitive and innovative features, products, and offers that are data-driven and are based on customer feedback. This includes recognizing and rewarding our customers, enhancing their banking experience, and delivering tangible benefits.”
Salima Gutieva, Visa’s VP and Country Manager for UAE, said, “We are delighted to expand our partnership with CBD with this exclusive multi-year partnership for their credit and debit portfolio. We will continue to work together to develop attractive products that deliver seamless, secure and rewarding experiences to the bank’s customers. CBD will be able to leverage Visa‘s industry-leading data and analytic capabilities to further drive innovation with personalized experiences for Visa cardholders. We also look forward to bringing value to local retailers and contribute to the UAE government’s efforts to grow the digital economy.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
