Riyadh – Mubasher: Saudi Telecom Company (stc) has sold vacant land spanning 4.10 million square metres in Al Khobar city at a total value of SAR 1.37 billion.

Hasan Abdulrahman Almusleh Alqahtani purchased the land plot at a price of SAR 336 per square metre, according to a bourse disclosure.

Located in Al Murjan area in South Al Aziziah district, the asset’s book value amounted to SAR 82 million.

The sale deal was guaranteed by a non-refundable deposit worth SAR 10 million and a SAR 1.36 billion promissory note in favour of the Tadawul-listed firm.

Meanwhile, the agreement aligned with the Saudi company's objective to enlarge the assets return and support capital recycling in order to boost investments in new domains.

In this regard, stc adopted a strategy for its owned land bank, which focuses on four pillars; selling, leasing, developing, and retaining.

The telecom firm expected SAR 1.29 billion worth of gains from the transaction, which will be registered in its interim consolidated income statements upon concluding all the required procedures.

The sale process is forecast to be closed within 120 days from the execution date of 17 January 2023.

In line with its growth and expansion plans, stc will use the proceeds of the bargain to maximise the return of its shareholders by scaling up investments and exploring key opportunities in the technology and telecom industry across Saudi Arabia and the region.

Earlier this month, Arabian Internet and Telecommunication Services Company (solutions) inked a sale and purchase agreement with stc to hold the latter’s 49% equity in Contact Center Company (CCC).

In the first nine months (9M) of 2022, stc generated SAR 9.41 billion net profits after Zakat and tax, up 8.22% from SAR 8.69 billion during the January-September 2021 period.