The Clap Saudi Telecommunications Company (STC) has acquired a 9.9% stake in Telefonica, valued at approximately 2.1 billion euros (around SAR 8.5 billion). This makes it the “largest shareholder” in the Spanish telecommunications giant.
What The deal is financed through the company’s own resources and bank loans, as part of its ongoing expansion strategy. This strategy involves acquiring stakes in “value-added strategic assets” in promising markets and capitalizing on the returns from these investments.
One recent example of this strategy was the acquisition of Tawal, a subsidiary of United Group, in Bulgaria, Croatia, and Slovenia.
So What Telefonica boasts a portfolio of infrastructure assets and advanced technology platforms, with a wide presence in three of Europe’s largest markets: Spain, Germany, and the United Kingdom, as well as Brazil, the largest market in Latin America and others.
Now What STC is the largest telecommunications operator in the Kingdom, holding stakes in companies operating in Kuwait and Bahrain, with 64% ownership by the Public Investment Fund (PIF).
On the other hand, CEO Alian Al-Watid explained that the deal will help STC leverage its strong financial position and continue its dividend distribution policy.