Riyadh – Mubasher: Saudi Telecom Company (stc) held 9.90% equity in Telefónica after purchasing 569.29 million shares at a total value of SAR 8.50 billion (EUR  2.10 billion).

The transaction aligns with the Saudi group’s expansion and growth strategy to acquire stakes in value-added strategic assets in key markets, according to a bourse disclosure.

Through these partnerships, stc plans to enhance its ability to invest in new domains and enlarge shareholder returns in a sustainable manner.

The telecom firm highlighted that the acquisition deal was funded through a mixture of its own resources and bank debt.

Leading European telecommunications operator Telefónica has a portfolio of infrastructure assets and developed technology platforms, where it has capabilities in adjacent areas, such as cognitive intelligence, edge computing, and Internet of Things (IoT).

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,” Al Faisal added.

Olayan Alwetaid, CEO of stc Group, said: “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," Alwetaid indicated. 

Earlier this week on the slides of the Seamless Saudi Arabia 2023 conference, stc inked cooperation agreements with digital platform PayTabs and information technology (IT) solution provider Brightware.