The Saudi Arabian Public Investment Fund (PIF) indicated it was exploring a sale of part of its 70 per cent stake in operator STC, though it plans to retain a controlling stake over the business.
In a statement, the PIF confirmed rumours which appeared earlier this year claiming the investor had began to explore cutting down its massive stake in the operator.
It added the company intended to retain more than 50 per cent of the operator’s equity, with any sale dependent on the transaction being in the interests of shareholders and subject to approval by authorities.
PIF appointed a number of banks to find potential buyers, targeting international and local institutional and retail investors.
Cash raised will be used by the fund to invest in new sectors. It added the sale would be beneficial for STC as it would diversify its investor base and increase its “free float and weight in relevant international indices”.
In addition to operating in its home market STC provides mobile services in Bahrain and Kuwait alongside various ICT products.Subscribe to our daily newsletter Back