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.
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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
Employment grew for the 16th consecutive month as companies expanded.
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According to a recent PMI report, Qatar experienced its fastest non-energy sector growth in almost two years in June, driven by surges in both existing and new business activities.
The Purchasing Managers’ Index (PMI) headline figure for Qatar reached 55.9 in June, up from 53.6 in May, with anything above 50.0 indicating growth in business activity. Employment also grew for the 16th month in a row, and the country’s 12-month outlook remained robust.
The inflationary pressures were muted, with input prices rising only slightly since May, while prices charged for goods and services fell, according to the Qatar Financial Centre (QFC) report.
This headline figure marked the strongest improvement in business conditions in the non-energy private sector since July 2022 and was above the long-term trend.
The report noted that new incoming work expanded at the fastest rate in 13 months, with significant growth in manufacturing and construction and sharp growth in other sectors. Despite the rising demand for goods and services, companies managed to further reduce the volume of outstanding work in June.
Companies attributed positive forecasts to new branch openings, acquiring new customers, and marketing campaigns. Prices for goods and services fell for the sixth time in the past eight months as firms offered discounts to boost competitiveness and attract new customers.
Qatari financial services companies also recorded further strengthening in growth, with the Financial Services Business Activity and New Business Indexes reaching 13- and nine-month highs of 61.1 and 59.2, respectively. These levels were above the long-term trend since 2017.
Yousuf Mohamed Al-Jaida, QFC CEO, said the June PMI index was higher than in all pre-pandemic months except for October 2017, which was 56.3. “Growth has now accelerated five times in the first half of 2024 as the non-energy economy has rebounded from a moderation in the second half of 2023,” he said.
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
