A subsidiary of stc with assets of 2.1 billion riyals for regional and international data centers

Saudi Telecom Company, stc, has announced plans to set up a specialized company in hosting services in data centers and regional and international connectivity, “The New Company”, and its main center will be located in the Kingdom. Shares of stc started today’s session at the latest after this announcement.

The initial capital of the new company will be 100 million riyals and will be 100% owned and this investment will be self-financed by the company’s sources.

STC intends to transfer its assets from data centers, international submarine cables and international points of presence to the new company and the initial valuation of these assets reached (2.1 billion riyals) in December 2021.

The new company will also make further estimated investments in 1.7 billion riyals, bringing total investments in the new company to approximately 3.8 billion riyals.

These assets and equity investments will subsequently be subject to a detailed assessment to determine their final value, as well as the determination of the capital for the new company, at the end of the necessary regulatory procedures.

The financial impact is expected to be positive for this company, but is not currently determinable until the necessary regulatory procedures are completed and approvals from the relevant authorities are obtained.

This initiative will strengthen the Kingdom’s position as a major digital center in the region and the world, leveraging the Kingdom’s geographic location in the heart of the Middle East as a hub linking the continents of Asia, Africa and Europe.

The new company will manage and continue to invest in submarine cables, including new cables that will be extended in more points in the Kingdom of Saudi Arabia.

The new company will also operate data centers and continue to invest in new data centers in the Kingdom and in the region e in other digital infrastructures to attract foreign direct investments and localize cloud content and services to implement digital transformation plans in the Kingdom of Saudi Arabia.

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