Stc has finalized the sale of its 51% stake in TelecomsTowers Company(better known asTawal) to its majority owner the Public Investment Fund (PIF), according to a disclosure to Tadawul. PIF-owned Golden Lattice Investment (Glic) is also being transferred to a newly-established entity, as part of a merger that has been in the works since 2022.

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REFRESHER- The PIF and stc have been working to consolidate Tawal and Glic under a new entity that is going to own and manage a portfolio of around 30k towers across five countries. The new entity will have annual revenues in the order of USD 1.3 bn.

Who will own what? The PIF will hold a majority stake of 54%, while stc will hold 43%, along with minority shareholders holding a combined 3%. Stc will also have to inject SAR 533 mn into the new entity for its shareholding amount to settle at 43%, bringing the capital of the new entity at SAR 1.2 bn, according to our calculations.

Talking valuation: Tawal is valued at SAR 22 bn, and Glic is valued at SAR 3 bn — both valuations are excluding the companies’ cashflow and debt obligations.

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