Riyadh, Saudi Arabia–Saudi Telecom Co., known by its acronym stc, will buy a bunch of tower assets from United Group for $1.3 billion as the company forays into Europe.
Its Tawal infrastructure arm will pay cash for a portfolio of more than 4,800 towers in Bulgaria, Croatia and Slovenia, according to a statement Thursday.
Media reports indicated that it was nearing an agreement to buy the assets from United Group, which is backed by buyout firm BC Partners.
Tawal, which is making its first foray into Europe through the acquisition, already owns more than 16,000 towers.
MENA telecom firms flush with cash have recently started stepping up their overseas investments, with Emirates Telecommunications Group Co. emerging as the biggest shareholder in Vodafone Group Plc with a roughly $4 billion stake.
“We are delighted to have successfully crystallized the value of our tower assets in a deal that enables us to delever and navigate global macroeconomic pressures,” United Group Chief Executive Officer Victoriya Boklag said in the statement.
Acquisitions of digital infrastructure assets have been heating up in Europe. Vodafone and Deutsche Telekom AG both agreed to sell multibillion-dollar stakes in their tower businesses to investment firms last year, while Brookfield Asset Management Ltd. reached a deal this month to acquire data center operator Data4.
Goldman Sachs Group Inc. advised United Group on the transaction, which is expected to close in the second half of 2023.