17:48 - 6.09.2023

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September 6, Fineko/abc.az. Saudi Telecommunication Company (stc Group) acquired 9.9% of shares of Telefónica S.A (Spain), according to the press release of stc Group.

ABC.AZ reports that the transaction value was 8.5 billion Swiss francs (€2.1 bn).

The transaction is in line with stc Group's strategy aimed at diversifying assets, including investments in the information, communications and technology sector in Saudi Arabia and Europe as part of expansion of stc Group's international presence in the ICT, IoT, cloud, cybersecurity and digital entertainment sectors through structural divisions.

In April 2023, Tawal, a subsidiary of stc Group, acquired United Group communications tower equipment in Bulgaria, Croatia and Slovenia for €1.22 bn.

The acquisition of Telefónica shares reflects stc Group's confidence in company's growth potential in key technology and digital infrastructure sectors in promising markets.

stc Group does not plan to acquire a controlling stake in Telefónica, but considers the transaction as an investment opportunity to use the balance sheet while maintaining the dividend policy.