Advanced Television

Saudi’s STC takes Telefónica stake

September 6, 2023

Saudi Arabia’s STC Group has acquired a 9.9 per cent stake in Telefónica, making it the second biggest holder in one of the largest telcos in the world with significant presence in Spain, Germany, the UK and Brazil, for a total consideration of SAR 8.5 billion (€2.1bn). STV Group said the acquisition represents another milestone in its expansion and growth strategy, and reflects its confidence in Telefónica’s sustainable growth and upside potential.

The Spanish government, which had 24 hours notice of the deal, says it will review the acquisition.

STC Group’s growth strategy has resulted in a number of investments in the Information, Communication and Technology sector inside Saudi Arabia and globally, the most recent being the acquisition by Tawal – a subsidiary of stc Group – of United Group’s telecommunications tower assets in Bulgaria, Croatia and Slovenia.

Mohammed K. A. Al Faisal, Chairman of STV 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 STV Group is a continuation of our growth strategy, as we invest in vital technology and digital infrastructure sectors across promising markets globally.”

Olayan Alwetaid, CEO of STC Group, added: “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. 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.”

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