Saudi Telecom Company (stc) has received a non-binding offer from the Public Investment Fund (PIF) to acquire 51% of the shares of Telecommunications Towers Company (Tawal), whilst stc will maintain 49% of Tawal’s shares.

Tawal was valued at SAR 21.94 billion ($5.85 billion), 100% enterprise value on a cash free and debt free basis, according to a bourse statement on Monday.

The offer remains subject to completing the due diligence and reaching a final and binding agreement, which will be conditional upon obtaining regulatory approvals from relevant bodies.

The offer, currently being assessed and evaluated, is in line with the company’s strategy related to growth and expansion by retaining ownership in strategic value-add assets and benefiting from the return on these assets.

A recommendation will be submitted to stc’s general assembly to authorise the offer if the two parties reached a final and binding deal.

PIF is a related party in stc, being the largest shareholder in it with 64% ownership.

If completed, the financial impact of the potential acquisition is forecast to be positive and material, stc said, adding that it will announce any material developments in due course.

In the first half (H1) of 2022, stc achieved net profits after Zakat and tax worth SAR 5.87 billion, higher by 1.71% than SAR 5.77 billion in H1-21.

The company’s revenues totalled SAR 33.93 billion in H1-22, an annual growth of 7.39% from SAR 31.59 billion.