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.
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Saudi Arabia ranked first among countries for the non-oil exports of national origin with BD201 million (22%)
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Bahrain’s non-oil exports of national origin decreased by 6% to BD894 million ($2.37 billion) in Q2 2024 compared to the same period in 2023. The top 10 countries accounted for 64% of the total export value.
According to the Information & eGovernment Authority (iGA) in its Q2 2024 Foreign Trade report, Saudi Arabia was the leading destination for these exports, totaling BD201 million (22%). The US followed with BD75 million (8.4%), and the UAE with BD73 million (8.2%).
Unwrought aluminum alloys were the top exported product in Q2 2024, amounting to BD267 million (30%), followed by agglomerated iron ores and concentrates alloyed at BD159 million (18%) and non-alloyed aluminum wire at BD49 million (5%).
Non-oil re-exports
Non-oil re-exports increased by 4% to reach BD206 million during Q2 2024, compared to BD198 million for same quarter in 2023. The top 10 countries accounted for 86% of the re-exported value. The UAE ranked first with BD58 million (28%) followed by Saudi Arabia with BD39 million (19%) and UK with BD17 million (8%).
As per the report, turbo-jets worth BD65 million (32%) were the top product re-exported from Bahrain, followed by private cars with BD11 million (5%) and four-wheel drive with BD9 million (4%).
The value of non-oil imports has decreased by 4% reaching to BD1.41 billion in Q2 2024 in comparison with BD1.47 billion for same quarter in 2023. The top 10 countries for imports recorded 68% of the total value of imports.
China Bahrain’s biggest importer
China ranked first for imports to Bahrain, with a total of BD191 million (14%), followed by Brazil with BD157 million (11%) and Australia with BD112 million (8%).
Non-agglomerated iron ores and concentrates were the top product imported to Bahrain worth BD200 million (14%), followed by other aluminum oxide with BD101 million (7%) and parts for aircraft engines with BD41 million (3%).
As for the trade balance, which represents the difference between exports and imports, the deficit logged was BD310 million in Q2 2024 compared to BD322 million in Q2 2023.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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