PIF, stc plan to bid for Spanish Cellnex's Austrian unit: Report

Logos of stc and Public Investment Fund (PIF)

stc Group and Public Investment Fund (PIF) may bid for the Austrian unit of Spanish mobile phone tower operator, Cellnex, El Economista newspaper reported on Wednesday, citing unidentified industry sources.

The unit is worth at least €800 million ($857 million), and operates at least 4,500 towers, the newspaper added.

The purchase will take place through the new entity resulting from the merger of Telecommunication Towers Company Limited (TAWAL) and Golden Lattice Investment Co.

The new entity will compete with a number of funds specialized in communications infrastructure, including Vauban Infrastructure Partners, Ignew Infrastructure Partners and EQT, in addition to companies such as Phoenix International Towers, GD Towers, and Deutsche Communications. Digital Bridge and Brookfield may also join the process.

stc signed, on April 21, a sale and purchase agreement with PIF to sell 51% of TAWAL for cash, according to data available to Argaam.

TAWAL and GLIC will be merged to form the region’s largest telecom tower company, the telecom operator said.

In September 2023, stc acquired a 9.9% stake in Spain-based Telefonica for SAR 8.5 billion (€2.1 billion).