Saudi Telecom to buy United Group towers for EUR1.2bn

Saudi Telecom Co. agreed to buy a portfolio of tower assets from United Group for EUR1.22bn ($1.3bn) as the carrier expands in Europe.

The state-backed firm’s Tawal infrastructure arm will pay cash for a portfolio of more than 4,800 towers in Bulgaria, Croatia and Slovenia, according to a statement Thursday.

Bloomberg News reported earlier that it was nearing an agreement to buy the assets from United Group, which is backed by buyout firm BC Partners.

Tawal, which is making its first foray into Europe through the acquisition, already owns more than 16,000 towers.

As part of our ambitious scale and scope growth journey, we announce that we have reached an important milestone in our strategy for expansion overseas.

Our subsidiary #TAWAL has acquired infrastructure assets in Europe for 1.2 billion Euros.https://t.co/8mlBa8EP84 pic.twitter.com/H0NSvxvyvS

— مجموعة stc (@stc) April 20, 2023

Middle Eastern telecom operators flush with cash have recently started stepping up their overseas investments, with Emirates Telecommunications Group emerging as the biggest shareholder in Vodafone Group with a roughly $4bn stake.

“We are delighted to have successfully crystallised the value of our tower assets in a deal that enables us to deliver and navigate global macroeconomic pressures,” United Group chief executive officer Victoriya Boklag said in the statement.

Acquisitions of digital infrastructure assets have been heating up in Europe. Vodafone and Deutsche Telekom AG both agreed to sell multibillion-dollar stakes in their tower businesses to investment firms last year, while Brookfield Asset Management reached a deal this month to acquire data center operator Data4.

Goldman Sachs Group advised United Group on the transaction, which is expected to close in the second half of 2023.

Read: Saudi’s PIF offers to buy stake in $5.8bn STC towers unit