Saudi telecom acquires 9.9% interest in Spain’s Telefónica

Saudi Arabia’s stc Group announces has acquired a 9.9 per cent interest in Telefónica, one of the telecommunications companies with significant presence in Spain, Germany, the UK, and Brazil, for a total consideration of SAR8.5bn (EUR2.1bn).

Telefónica benefits from a unique portfolio of infrastructure assets and 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).

We acquired a 9.9% interest in Telefonica one of the largest telecommunications companies in the world with significant presence in Europe and Latin America. This acquisition provides our shareholders with opportunities for value creation pic.twitter.com/cXElLiBC79

— مجموعة stc (@stc) September 5, 2023

Meanwhile, 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.

Mohammed K A 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.”

Hear from our leadership on the exciting potential for value creation through our investment in Telefonica. pic.twitter.com/PHRilEbyhb

— مجموعة stc (@stc) September 5, 2023

Olayan Alwetaid, CEO of stc Group, commented: “Our investment in Telefónica demonstrates our confidence in Telefónica’s 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.”

Also read: UAE’s e& eyes further expansion, acquires Czech PPF Group’s telecom assets