Saudi Arabia’s stc Group acquires 9.9% stake in Telefónica

Saudi Arabian telecom stc Group has bought a 9.9% stake in Spain’s telecommunications company Telefónica for a total of €2.1 billion.

The Saudi telco provides digital solutions and services, including online payments, telecommunications, IOT, AI, 5G, cloud computing, e-gaming and cybersecurity, Fintech and other advanced digital solutions in Saudi Arabia and the MENA region.

The group has been expanding its reach in the communication and technology sector, following the sale of 100% of United Group’s mobile tower infrastructure unit in Bulgaria, Croatia, and Slovenia to Tawal, a subsidiary of stc Group, in April.

Mohammed K. A. Al Faisal, chairman of stc Group, commented, “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.”

“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,” said Olayan Alwetaid, CEO of stc Group.

He added, “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.”