Riyadh, Saudi Arabia – stc Group has acquired a 9.9% stake in Telefَonica, one of the largest telecommunications companies in the world with presence in Spain, Germany, the UK, and Brazil, for SAR 8.5 billion ($2.26 billion).
The group’s growth strategy has resulted in 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 Group’s telecommunications tower assets in Bulgaria, Croatia and Slovenia.
“Telefَnica and stc Group share many similarities, with a vision to use technology to connect people and a strategy to drive growth,” Chairman of stc Group Mohammed K A Al Faisal said. “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 Telefَonica demonstrates our confidence in Telefَnica’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,” he added.