PIF sells stake in STC for $1 billion raising stake to 62%
Deal News | Nov 14, 2024 | Zawya
Saudi Arabia's Public Investment Fund (PIF) has sold a 2% stake in the Saudi Telecom Company (STC) for over $1 billion. This sale reduces PIF's ownership in STC to 62%. The transaction involved the sale of 100 million shares priced at 38.6 riyals ($10.29) each and was significantly oversubscribed by both local and international institutional investors. The sale will be conducted through off-market deals before the market opens on Thursday. Post-sale, PIF's remaining shares in STC are under a 90-day lock-up period. Goldman Sachs Saudi Arabia and SNB Capital are acting as the joint global coordinators and bookrunners for the sale. This move aligns with PIF's strategy under Saudi Arabia's Vision 2030, aimed at reducing the economy's dependence on oil. The fund, which manages assets close to $1 trillion, had previously raised $3.2 billion by selling a 6% stake in STC in 2021.
Sectors
- Telecommunications
- Investment Management
Geography
- Saudi Arabia – The main activities discussed in the article, including the sale of STC shares by PIF, take place within Saudi Arabia, which is central to the Vision 2030 economic strategy.
Industry
- Telecommunications – The article discusses Saudi Telecom Company (STC), which operates in the telecommunications industry, providing mobile and internet services.
- Investment Management – PIF, a sovereign wealth fund, belongs to the investment management sector, as it oversees diverse asset portfolios including stakes in large companies like STC.
Financials
- $1 billion – The total proceeds from the sale of a 2% stake in STC by PIF.
- $10.29 – The final price per share of the 100 million STC shares sold.
- 38.6 riyals – The equivalent local currency price per share of STC stock in the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Public Investment Fund (PIF) | Selling Company | Government | Saudi Arabia's sovereign wealth fund, overseeing nearly $1 trillion in assets and key player in the Vision 2030 plan. |
| Saudi Telecom Company (STC) | Target Company | Company | The largest telecom provider in Saudi Arabia offering a range of communication services. |
| Goldman Sachs Saudi Arabia | Financial Advisor | Company | Acting as joint global coordinator and bookrunner in the PIF's share sale of STC. |
| SNB Capital | Financial Advisor | Company | Also serving as joint global coordinator and bookrunner for the transaction. |