Saudi Arabia to Establish Region’s Largest Telecom Tower Company
The Public Investment Fund (PIF) and Saudi Telecommunications Company (STC Group) have announced significant agreements in which PIF will acquire a 51% stake in TAWAL company from STC Group, according to the Saudi Press Agency (SPA).
TAWAL, the largest telecommunications company in Saudi Arabia, has entered a new phase of collaboration with Golden Lattice Investment Company (GLIC), in which PIF holds the largest shareholding.
These agreements aim to integrate and unlock the consolidated potential of both entities, thereby expanding the telecommunications infrastructure in Saudi Arabia.
Under the agreement, PIF and STC Group will merge TAWAL and GLIC into a newly formed combined company, establishing the largest telecom tower company in the region. PIF will own 54% of the new entity, while STC Group will hold 43.1% and the remaining share capital will be owned by GLIC minority shareholders.
The implementation of these deals is expected in the second half of this year, subject to meeting all necessary conditions and obtaining regulatory approvals.
GLIC and TAWAL are working together to enhance connectivity across the Kingdom, aiming to provide faster, more reliable, and accessible services for communities and businesses. Raid Ismail, Head of MENA Direct Investments at PIF, emphasized the significance of this announcement for the telecommunications industry in Saudi Arabia and the wider region.
He stated, “By combining the assets of GLIC and TAWAL, we will establish a consolidated platform that will drive growth and deliver an improved experience for users.”
This transaction aligns with the PIF’s commitment to achieving a more interconnected digital future in line with Saudi Vision 2030.
Motaz Alangari, Group Chief Investment Officer of STC Group, emphasized the role of this announcement in accelerating the digital transformation of society and the economy in Saudi Arabia and the region.
The newly formed company is expected to create approximately 30,000 mobile tower sites, with estimated annual revenues of around $1.3 billion, as stated in a joint statement by PIF and STC.
By consolidating all tower assets in the Kingdom, the new company aims to enhance network coverage and improve mobile internet speeds, providing an enhanced customer experience.
This announcement follows TAWAL’s recent acquisition of infrastructure assets in Bulgaria, Croatia, and Slovenia.
With this achievement, TAWAL has become the largest independent telecom tower company in the region.
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