Riyadh – Mubasher: Saudi Telecom Company (stc) plans to establish a company at an initial capital of SAR 100 million that will be focusing on data centre hosting as well as international and regional connectivity.

The new business will be 100% owned by stc, which will finance the investment from its own resources, and its head office will be located in Saudi Arabia, according to a bourse disclosure on Wednesday.

stc aims to transfer its data centres, international submarine cables, besides international points of presence assets to the new company, which name has not been disclosed yet.

The initial valuation of the assets reached an approximate value of SAR 2.1 billion as of December 2021. The new company will be pumping an additional investment of SAR 1.7 billion, which brings the total value to SAR 3.8 billion.

stc noted that the final evaluation of the assets and investments will be determined at a later time, while the final capital needed for the new business will be announced once regulatory requirements are fulfiled.

The listed company expects a positive impact of setting up the new firm, yet it will determine it after regulatory approvals.

Meanwhile, the listed company’s subsidiary stc pay has signed a memorandum of understanding (MoU) with HungerStation to boost digital transformation, according to a press release.

The partnership aims to promote customers’ experience and expand collaboration between stc pay and HungerStation.

The MoU was signed during the LEAP 2022 International Technical Conference, which takes place on 1-3 February in Saudi Arabia. The event is bringing together over 350 speakers from 80 countries as well as 700 innovators and startups from across the globe.