- ‘This long-term, significant investment by STC is a continuation of our growth strategy, as we invest in vital technology and digital infrastructure sectors,’ said Chairperson Mohammed Al-Faisal
LONDON: Saudi Arabia’s stc Group has agreed to buy a 9.9 percent stake in Spanish business Telefonica for €2.1 billion ($2.25 billion), through an acquisition of shares and financial instruments.
“Telefonica and stc Group share many similarities, with a vision to use technology to connect people and a strategy to drive growth,” said Mohammed Al-Faisal, the chairperson of stc.
“This long-term, significant investment by stc is a continuation of our growth strategy, as we invest in vital technology and digital infrastructure sectors across promising markets, globally.”
Olayan Alwetaid, stc Group’s CEO, said: “Our investment in Telefonica demonstrates our confidence in its 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 while maintaining our dividend policy.”
Telefonica is one of the largest telecommunications companies in the world, with significant presence in its home country, Germany and the UK.
The group said its growth strategy has resulted in a number of investments within Saudi Arabia and globally, the most recent of which before the Telefonica announcement on Sunday was the acquisition by stc subsidiary Tawal of United Group’s telecommunications-tower assets in Bulgaria, Croatia and Slovenia.
Source: Arab News