stc Group has announced that its ICT infrastructure subsidiary, TAWAL, has agreed to acquire United Group’s telecommunications tower assets.
The agreement, which is valued at $1.34 billion (EUR 1.220 billion), is part of stc Group’s ambitious plan to expand its international presence in markets with significant growth potential.
This acquisition is a significant milestone in TAWAL’s international expansion journey and stc Group’s growth ambitions, which have been actively expanding in ICT adjacencies, including recent investments in ICT, IoT, Cloud, Cybersecurity, Fintech, and digital entertainment through its subsidiaries. This move marks TAWAL’s first step in Europe.
Upon completion of the acquisition, TAWAL will own and operate more than 4,800 sites across Bulgaria, Croatia, and Slovenia, providing a wide range of passive infrastructure services, including ground-based towers, rooftops, small cells, and in-building solutions.
TAWAL will deploy over 2,000 additional sharable sites as part of the 20-year master services agreement with United Group, while maintaining and expanding co-location relationships with other mobile network operators. This will enable stc Group to drive digital transformation by providing world-class connectivity.
“Our agreement with United Group represents an exciting new chapter for TAWAL and the wider stc Group,” said Olayan Alwetaid, Chief Executive Officer, stc Group.
“The agreement is a significant milestone in our ambitious growth strategy and the expansion of our international footprint. We are already leading the transformation of Saudi Arabia’s digital capabilities and this transaction reinforces our commitment to investing in best-in-class technology and infrastructure to lead the way in enabling the world to connect.”
Mohammed Alhakbani, Chief Executive Officer, TAWAL, said, “We are delighted to partner with United Group in our first investment in the European market. The partnership supports our goal to continue to provide innovative and efficient ICT infrastructure solutions to our partners and deliver the quality of services we are renowned for.”
Subject to regulatory approval from the relevant authorities in Bulgaria and Slovenia, the transaction will result in TAWAL’s operations in the European market being rebranded as “TAWAL Europe.” This will serve as TAWAL’s platform for any future expansion in Europe.
TAWAL currently possesses a portfolio of more than 16,000 telecom towers. The company is actively supporting digital transformation initiatives in Saudi Arabia, expanding its presence to new cities and rural areas in the Kingdom. It is also actively deploying smart-city-ready technologies, such as camouflage telecom towers, smart poles capable of supporting 5G and IoT applications, in-building solutions, and small cells.
