stc Group, a leader in digital solutions and services, has acquired a 9.9% interest in Telefónica, one of the largest telecommunications companies in the world with a significant presence in Spain, Germany, the UK, and Brazil, for a total consideration of SAR8.5 billion ($2.26 billion).

 

This acquisition represents another milestone in stc Group’s expansion and growth strategy, and reflects its confidence in Telefónica’s sustainable growth and upside potential, said a statement.

 

Telefónica benefits from a unique portfolio of best-in-class infrastructure assets and cutting-edge 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), it said. 

 

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.”

 

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,” Alwetaid said. - TradeArabia News Service