STC board approves $100m investment in Careem
The agreed investment is inline with the company's strategy to invest in the innovative digital world
STC has agreed to buy a 10% stake in regional taxi-haling app Careem for $100 million, the telecom group said in a posting on the Saudi bourse website.
The deal, which will be funded from STC's internal financial resources, is conditional on meeting all requirements to close the deal, the bourse filing said.
"This move is in line with the company strategy to invest in the innovative digital world, which helps the company to provide additional valuable and innovative products and services to their valued customers and to enhance communication via mobile within the transport system," the bourse statement added.
STC already has a stake in Careem through STC Ventures, an independently managed venture capital fund of which the Saudi telco is an anchor investor, Reuters reported.
Careem was established in 2012 and has operations available in 47 cities across the Middle East and North Africa, Turkey and Pakistan.