stc Group, the leading digital enabler in the region, entered the European market through its subsidiary, TAWAL that signed an agreement to acquire a portfolio of tower assets from United Group for EUR 1.22 billion (nearly SAR 5 billion) as the telecom operator expands globally.
The acquisition is a qualitative move by stc in line with its expansion and growth strategy, after entering into various promising sectors, and its investment in information technology, the internet of thins (IoT), cloud computing, information security, digital financial services and digital entertainment. The company also expanded presence in Bahrain, Kuwait and Malaysia through its subsidiaries.
TAWAL’s expansion in Europe will allow the company own quality digital infrastructure assets through acquiring and operating more than 4,800 sites in three member states in the European Union (EU), namely Bulgaria, Croatia and Slovenia. The deal will provide an integrated set of telecom infrastructure services, starting from telecom towers, small cells on rooftops and coverage solutions inside buildings. This comes as part of the main services agreements, under which these sites will be leased for 20 years for United Group to provide telecom services. TAWAL will deploy over 2,000 additional towers, while co-location relationships with other mobile network operators will be maintained and expanded, enabling stc Group to drive digital transformation through providing world-class connectivity.
The deal is subject to the approval of regulatory authorities in Bulgaria and Slovenia. Once finalized, these assets will be owned by TAWAL Europe, TAWAL’s arm to expand in Europe.
Olayan Alwetaid, CEO, stc Group, said: “Our agreement with United Group represents an exciting new chapter for TAWAL and the wider stc Group. The agreement is a significant milestone in our ambitious growth strategy and the expansion of our international footprint. We are already leading the transformation of Saudi Arabia’s digital capabilities and this transaction reinforces our commitment to investing in best-in-class technology and infrastructure to lead the way in enabling the world to connect.”
Mohammed Alhakbani, CEO, TAWAL, said, “We are delighted to partner with United Group in our first investment in the European market. The partnership supports our goal to continue to provide innovative and efficient ICT infrastructure solutions to our partners and deliver the quality of services we are renowned for.”
TAWAL currently holds a portfolio of over 16,000 telecom towers. It supports digital transformation plans and expands its reach to remote cities and areas.
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