Riyadh, September 5, 2023, For a total of SAR 8.5 billion (EUR 2.1 billion), the stc Group stated that it had bought a 9.9% shareholding in Telefnica S.A. ("Telefnica"), one of the major telecommunications businesses in the world with a sizable presence in Spain, Germany, the UK, and Brazil. This acquisition marks another significant turning point in the Stc Group's expansion and growth plan and demonstrates that company's faith in Telefnica's steady growth and upside potential. As it develops cutting-edge capabilities in related fields like cognitive intelligence, edge computing, and IoT (the Internet of Things), Telefnica benefits from a distinctive portfolio of best-in-class infrastructure assets and cutting-edge technological platforms. The most recent investment made in the information, communication, and technology (ICT) sector by stc Group's growth strategy was the purchase of United Group's telecommunications tower assets in Bulgaria, Croatia, and Slovenia by Tawal, a stc Group subsidiary.
Telefnica and stc Group share many similarities, with a vision to use technology to connect people and a strategy to drive growth," stated Mohammed K. A. Al Faisal, chairman of stc Group. The Stc Group's substantial, long-term commitment is a continuation of our growth plan as we make investments in key technology and digital infrastructure areas across global markets.
Our investment in Telefnica demonstrates our confidence in Telefnica's leadership, strategy, and ability to create value," said Olayan Alwetaid, CEO of the stc Group. As supportive, long-term shareholders, we are dedicated to advancing our collaboration.
Instead, we view this as a compelling investment opportunity to take advantage of our strong balance sheet while retaining our dividend policy. We do not intend to acquire ownership or a majority stake.
