Saudi Arabia has taken a massive SR8.5bn ($2.3bn) stake in telecoms giant Telefonica.
stc Group has announced that it has acquired a 9.9 per cent interest in Telefonica, 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 SR8.5bn ($2.3bn).
This acquisition represents another milestone in stc Group’s expansion and growth strategy, and reflects stc Group’s confidence in Telefonica’s sustainable growth and upside potential.
Saudi firm takes stake in telecoms giant
Telefonica benefits from a unique 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 Group’s growth strategy has resulted in a number of investments in the Information, Communication and Technology sector inside Saudi Arabia and globally, the most recent being the acquisition by Tawal, a subsidiary of stc Group, of United Group’s telecommunications tower assets in Bulgaria, Croatia and Slovenia.
Chairman of stc Group Mohammed K. A. Al Faisal said: “Telefonica 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.”
CEO of stc Group Olayan Alwetaid said: “Our investment in Telefonica demonstrates our confidence in Telefonica’s leadership, strategy and 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 while maintaining our dividend policy.”
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