STC Group is reportedly mulling submitting an offer for Europe-based United Group, in a transaction that could value the telecom and pay-TV operator at USD 8.7 bn, Reuters reports, citing three people it says are familiar with the matter. The sources did not provide further information on the size or value of the stake STC is looking to acquire.

Not set in stone: STC has “started early stage work” on a potential transaction, but a formal offer is still not a certainty, one of the sources said.

What’s United Group? The “leading multi-play telecoms and media provider in South East Europe” currently operates in eight countries, according to its website. The operator was acquired by a UK private equity firm BC Partners in 2019.

All part of a Europe push: Saudi’s largest telecoms operator, which is 64% owned by the Public Investment Fund, grabbed a 9.9.% stake in Spain’s Telefonica last September to telecom giant’s top shareholder, and have also reportedly submitted the highest binding offer to acquire Altice Portugal, the largest telecom service provider in Portugal. STC subsidiary Tawal, a leading integrated ICT infrastructure company in the MENA region, also agreed to buy mobile tower infrastructure in Bulgaria, Croatia, and Slovenia worth EUR 1.2 bn from United Group.

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