The latest investment reflects STCs growth strategy and is part of the companys expansion plans.
STC Group has acquired a 9.9% interest in Telefónica (Telefónica), one of the largest telecommunications companies in the world with a significant presence in Spain, Germany, the UK, and Brazil, for a total consideration of SAR 8.5bn ($2.27bn).
This acquisition represents another milestone in STC Groups expansion and growth strategy, and reflects STC Groups confidence in Telefónicas sustainable growth and upside potential. Telefónica benefits from a portfolio of best-in-class infrastructure assets and cutting-edge technology platforms, where it is developing state-of-the-art capabilities in adjacent areas such as cognitive intelligence, edge computing and IoT (Internet of Things).
STC Groups growth strategy has resulted in a number of investments in the Information, Communication and Technology sectors inside Saudi Arabia and globally, the most recent being the acquisition by Tawal a subsidiary of STC Group of United Groups telecommunications tower assets in Bulgaria, Croatia and Slovenia.
Speaking about the acquisitions, Mohammed KA Al Faisal, Chairman of STC Group, said: “Telefónica and STC Group share many similarities, with a vision to use technology to connect people and a strategy to drive growth. This long-term, significant investment by STC Group is a continuation of our growth strategy, as we invest in vital technology and digital infrastructure sectors across promising markets globally.”
Olayan Alwetaid, CEO of STC Group, commented: “Our investment in Telefónica demonstrates our confidence in Telefónicas leadership, its strategy and its ability to create value. As long-term, supportive shareholders, we are committed to strengthening our partnership.
We do not intend to acquire control or a majority stake but rather we see this as a compelling investment opportunity to use our strong balance sheet whilst maintaining our dividend policy.”
