STC signs an agreement with the Investment Fund to set up an internet company of Things

Saudi Telecom Company (STC) has announced the signing of a partnership agreement with the Public Investment Fund for the establishment of a limited liability company specializing in the field of the Internet of Things, in in line with the expected growth and growing demand for IoT services and products, as well as the company’s growth strategy and Saudi Arabia 2030 vision for a connected nation, and will be based in the Kingdom of Saudi Arabia.

The capital of the new company is 492 million riyals at the time of incorporation and the share of each party is 50% of the capital.

STC will self-finance its share of this investment – equal to 246 million riyals – from the company’s sources.

The agreement provides for the possibility to increase the capital of the new company up to a total of 900 million riyals, as needed and based on the needs of the new company, by the end of the third fiscal year following the incorporation, and will be subject to approval. of competent and regulatory authorities. The contribution of both sides will be in based on their percentage of ownership in the capital.

The financial impact of the new company is expected to be positive on STC. The project depends on obtaining the necessary regulatory approvals and completing the terms of the partnership agreement to form the new company and start its business.

It is worth noting that the Public Investment Fund is a related party in how much is the largest shareholder of the Saudi Telecom Company and owns 64% of the shares of STC Abdul Rahman Al Hamid, Rania Bint Mahmoud Nashar, Arndt Rautenberg, Sanjay Kapoor.

A recommendation will be presented to the STC General Assembly (the date of which will be determined in later) to vote on the license of this transaction in compliance with relevant rules and regulations.

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