Saudi wealth fund makes offer for 51% of Saudi Telecom towers unit

DUBAI, Oct 24 (Reuters) – Saudi Telecom Firm (STC) (7010.SE) mentioned on Monday the dominion’s sovereign wealth fund had made a non-binding supply to purchase 51% of its towers enterprise, valuing the latter at nearly $6 billion.

The supply from the sovereign Public Funding Fund (PIF), which owns 64% of STC, is topic to a closing settlement and approvals, STC mentioned.

Telecom Towers Firm (TAWAL), totally owned by STC, is valued at 21.94 billion riyals ($5.84 billion), STC mentioned.

Saudi Telecom mentioned the supply was consistent with its development technique to “increase by retaining stakes in value-added strategic belongings throughout its subsidiaries, in addition to benefiting from the return on these belongings” that can enable it to take a position additional and maximise shareholder returns.

PIF, which manages $608 billion in belongings, was the second most lively state investor from Jan. 1 to Oct. 1 this yr, with 39 offers valued at $17.2 billion in that interval, in response to wealth fund tracker World SWF.

PIF is on the centre of the highest oil exporting nation’s plan to wean its economic system off oil by constructing new industries.

Earlier this yr, it led a consortium to purchase a majority stake in cellular telecommunications firm Zain Saudi Arabia’s (7030.SE) towers infrastructure for simply over 3 billion riyals, renaming the unit Golden Lattice Funding Firm (GLI).

Individually, sources informed Reuters final month Qatari telecommunications agency Ooredoo (ORDS.QA) is contemplating the sale of its tower community.

($1 = 3.7585 riyals)

Reporting by Yousef Saba
Modifying by Bernadette Baum

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