Riyadh – Mubasher: Saudi Telecom Company (stc Group) unveiled that its information and communications technology (ICT) infrastructure subsidiary, TAWAL, has signed an agreement to acquire United Group’s telecommunications tower assets.
The agreement is valued at EUR 1.22 billion and marks TAWAL’s first step in Europe. The deal covers the acquisition of infrastructure assets from United Group across Bulgaria, Croatia, and Slovenia, according to an announcement on 20 April.
The expansion deal further endorses stc’s strategy to develop its international footprint in major markets with significant growth potential. The group has been actively growing in the ICT adjacencies, including recent investments in ICT, IoT, Cloud, Cybersecurity, fintech, and digital entertainment, through its subsidiaries.
Upon completion of the acquisition deal, TAWAL’s operations across Europe will be rebranded to TAWAL Europe and will serve as TAWAL’s platform for any future expansion in the European market.
The transaction, however, is subject to regulatory approvals from the relevant authorities in Bulgaria and Slovenia, while it is expected for the sale-and-lease-back transaction to close in 2023.
Following completion of the takeover, TAWAL will own and operate over 4,800 sites across Bulgaria, Croatia, and Slovenia; all European Union member states, two of which are already Eurozone members.
Upon the 20-year master services agreement with United Group, TAWAL will deploy more than 2,000 additional sharable sites, while co-location relationships with other mobile network operators will be maintained and expanded. This step is expected to allow the listed group to drive digital transformation by providing world-class connectivity.
CEO of stc Group, Olayan Alwetaid, said: “The agreement is a significant milestone in our ambitious growth strategy and the expansion of our international footprint. We are already leading the transformation of Saudi Arabia’s digital capabilities and this transaction reinforces our commitment to investing in best-in-class technology and infrastructure to lead the way in enabling the world to connect.”
Meanwhile, Mohammed Alhakbani, CEO of TAWAL, said, “We are delighted to partner with United Group in our first investment in the European market. The partnership supports our goal to continue to provide innovative and efficient ICT infrastructure solutions to our partners and deliver the quality of services we are renowned for.”
It is worth noting that TAWAL currently owns a portfolio of over 16,000 telecom towers.
In late 2022, stc received a non-binding offer from the Public Investment Fund (PIF) to acquire 51% equity in TAWAL.
The listed telecom operator achieved net profits after Zakat and tax worth SAR 12.17 billion in 2022, which came 7.60% higher than SAR 11.31 billion in 2021.
