The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, is taking a major step towards establishing the region’s biggest telecommunications infrastructure company. 

The wealth fund signed a deal to acquire a 51% stake in the tower infrastructure unit of Saudi Telecom Company (STC), the kingdom’s largest phone company.

This agreement paves the way for the creation of a telecommunications infrastructure giant. PIF will merge Tawal, STC’s tower unit valued at $5.8 billion, with Golden Lattice Investment Company (GLIC), a PIF-controlled entity valued at $807 million. The resulting entity will boast a portfolio of around 30,000 towers across five countries, placing it among the world’s largest tower companies.

“By bringing together the assets of GLIC and TAWAL, we will establish a consolidated platform on which the telecommunications sector can flourish and give people a better experience to best connect communities and businesses,” said Raid Ismail, Head of MENA Direct Investments at PIF.

The new entity’s combined annual revenue is estimated at approximately $1.3 billion. PIF will hold a controlling stake of 53.99%, with STC retaining a significant 43.06% ownership. STC will inject an additional $142 million into the new company’s capital to achieve this.

The deal is expected to be finalized in the second half of 2024.