STC eyes acquisitions in MENA region

The operator’s global operations to contribute 50% of total revenues, says a report.

Tags: Saudi Telecom Company
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STC eyes acquisitions in MENA region KSA-based STC plans to undergo reinvestment operations despite its ability to borrow after its recent $1.2 billion Shariah deal for Axis, its Indonesian subsidiary, states a report.
By  Nithyasree Trivikram Published  June 5, 2011

Saudi Arabia's telecom operator, STC, plans to embark on a major acquisition drive in the Middle East in the short term, according to a report by Riyadh Capital Group, an independent investment banking arm of Riyad Bank.

STC will also undergo reinvestment operations despite its ability to borrow after its recent announcement of $1.2 billion Shariah deal for its Indonesian subsidiary, Axis to finance its mega expansion plan in the country for the next five years, the local Saudi Gazette newspaper quoted the report as saying.

It is expected that STC's global operations will contribute about 50% of the total revenues, up from the current 34%. To achieve this, the operator is to invest in high growth markets, increase its stake in existing subsidiaries and seek attractive acquisition opportunities, the report said. The buy rating at SR52 ($13.9) is currently under its fair price, the report added.

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