PIF and stc Group Form KSA’s Largest Telecom Tower Company

PIF will acquire a 51% stake in TAWAL from stc Group, with the newly-formed entity to become one of the largest tower companies in the world

The Public Investment Fund (PIF) of Saudi Arabia and Saudi Telecommunications Company (stc Group) have signed definitive agreements to combine their telecom tower assets into a newly-merged entity, forming the largest company in Saudi Arabia’s telecommunication infrastructure sector.

Under the deal, PIF will acquire a 51% stake in Telecommunication Towers Company Limited (TAWAL) – Saudi Arabia’s largest and one of the region's biggest telecom infrastructure companies – from stc Group for US$5.85bn.

Subsequently, PIF and stc Group – one of the Middle East’s leading network providers – will consolidate TAWAL with Golden Lattice Investment Company (GLIC), in which PIF already holds a majority stake. The combined new entity will be 54% owned by PIF, 43.1% by stc Group, and the remaining by GLIC's minority shareholders.

New company to feature 30,000 tower sites across Saudi Arabia and beyond

The move aims to create a telecom tower behemoth with approximately 30,000 mobile tower sites across the region and beyond. With an estimated annual revenue of US$1.3bn, the new company will become one of the largest tower firms globally.

The transactions are expected to be completed in the second half of 2024 after obtaining all required regulatory approvals. 

“Today's announcement is a significant milestone for the telecommunications industry in Saudi Arabia and the wider region,” comments Raid Ismail, Head of MENA Direct Investments at PIF. “By bringing together the assets of GLIC and TAWAL, we will establish a consolidated platform on which the telecommunications sector can flourish and give people a better experience to best connect communities and businesses. It is also in line with PIF’s strategy and the Saudi Vision 2030. Fast, reliable and accessible connectivity is a key enabler of growth and a cornerstone for the society, and these agreements mark a major stride towards a more interconnected digital future.”

The consolidated tower assets are expected to significantly enhance consumer experience, network coverage, connectivity, and mobile internet speeds across Saudi Arabia. By integrating the kingdom's tower infrastructure, the new entity can drive operational efficiencies and unlock wider innovation in the telecom sector regionally and worldwide.

Motaz Alangari, Group Chief Investment Officer of stc Group said: “These agreements are part of stc Group’s continuous endeavour to grow and maximise value in the most sustainable manner, by recycling capital while retaining ownership in strategic value-added assets to benefit from the return on these assets and enable expansion into new domains. Today’s announcement is in line with stc Group’s strategy and the pivotal role that the group is playing in accelerating the digital transformation of society and the economy in Saudi Arabia and the region. Combining TAWAL and GLIC is a stepping-stone to consolidating the Saudi tower market and driving further efficiencies and operational excellence to deliver superior experiences and value for customers.”

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