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Telecom major stc signed, today, March 22, a joint venture (JV) agreement with a number of companies to set up a cloud computing services firm as a limited liability company in Saudi Arabia, according to a bourse filing today, May 22.
These companies are eWTP Arabia Technology Innovation Limited Company (eWTPA), Alibaba Cloud (Singapore) Private Limited (Alibaba Cloud), Saudi Company for Artificial Intelligence (SCAI) and Saudi Information Technology Company (SITE).
The new firm, capitalized at SAR 894 million, aligns with stc's expansion and growth strategy, in addition to the Saudi Vision 2030.
Its ownership structure will be as follows; stc 55%, eWTPA 27%, Alibaba Cloud 10%, SCAI 4% and SITE 4%.
stc share in the new firm amounting to SAR 491.7 million will be financed from its own resources.
The new unit, expected to have a positive financial impact on stc in the long term, requires some regulatory approvals and the fulfillment of the JV agreement terms.
The Public Investment Fund (PIF) is a limited partner in eWTPA through its wholly-owned subsidiaries and owns 100% of SCAI and SITE. The PIF is a related party, as it is an stc major shareholder with 64% ownership.
Khaled Biyari, Yazeed A. AlHumied, Rania Nashar, Arndt Rautenberg and Sanjay Kapoor are representatives of the PIF and have indirect interest in the deal.
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