stc injects SAR 802 mln to retain 85% of stc pay, Western Union holds 15% stake

Logo of stc pay

The Saudi Cabinet approved on June 22, the licensing of stc pay to become a digital bank with a paid-up capital of SAR 2.5 billion, stc said in a bourse filing.

The approval and the completion of the transaction are conditional upon completing the regulatory requirements of the Saudi Central Bank (SAMA) and the relevant authorities.

stc will inject SAR 802 million to retain 85% of stc pay’s share capital. Western Union, via a wholly-owned subsidiary, will also invest SAR 750 million to own 15% of stc pay’s share capital, raising total capital to SAR 2.5 billion.

In line with the previous announcement, the capital of stc pay increased from SAR 400 million to SAR 948 million, as a result of the following:

- SAR 148 million shareholder’s loan was converted into stc pay’s share capital

- stc injected additional SAR 400 million into stc pay’s share capital.

The company will announce any material developments in due course.

According to data compiled by Argaam, in November 2020, stc sold a 15% stake in stc pay, the fully-owned subsidiary of the telecom service provider, to Western Union for $200 million (SAR 750 million).