stc shareholders to vote on July 24 on PIF’s takeover of TAWAL for SAR 8.7B

Meanwhile, additional agreements were signed to transfer the ownerships of TAWAL and Golden Lattice Investment Co. (GLIC), under a new entity, Digital Infrastructure Co.

GLIC owns and operates 8,069 telecommunications towers in the Kingdom. It is owned by the PIF and Prince Saud bin Fahd bin Abdulaziz and Sultan Holding Co.

The total value of GLIC was determined at SAR 3.03 billion on the basis of excluding cash and debt balances.

stc will pump SAR 533 million into the capital of Digital Infrastructure to maintain its ownership at 43.06 %, while the cash consideration paid in favor of stc and the value of capital increase will be subject to change, in accordance with the deal completion mechanism.

Accordingly, the new entity will be 53.99% PIF-owned, 43.06% by stc, 1.48% by Prince Saud bin Fahd bin Abdulaziz and 1.48% by Sultan Holding Co.

The deal agreements include a number of terms that must be fulfilled, such as obtaining approval from the Communications, Space and Technology Commission (CITC), and another company of a regulatory and commercial nature. These agreements fall within the normal course of business and do not grant any preferential benefits.

stc disclosed that PIF is a related party as it is one of the largest shareholders with a stake of 64% in the telco. Additionally, some members of the board of directors—namely, Khaled Biyari, Yazeed Al Humied, Rania Nashar, Arndt Rautenberg, and Sanjay Kapoor—have indirect interests as they are representatives of the fund.

The company added that the meeting’s agenda also has a number of other items, including voting on the election of board members for the next session.