PIF says partial stake sale in stc to recycle capital to new investments

Logo of the Public Investment Fund 

The Public Investment Fund (PIF) announced today, Sept. 30, that it is studying a sale of part of its stake in stc, targeting international and local institutional investors as well as retail investors, while maintaining majority stake of more than 50% in the company.

The potential transaction is in line with PIF’s strategy to recycle its capital to new investments, the PIF said in a statement.

The potential deal is expected to contribute to PIF’s establishment and development of new sectors, in addition to strengthening the Saudi economic growth and diversifying its sources of income.

The deal is expected to contribute to the medium and long-term value for all of STC’s investors by diversifying the Company’s investor base and increasing its free float and weight in relevant international indices.

The final decision regarding the potential deal will have full regard to the prevailing market conditions and the interests of the Company’s existing shareholders, the Kingdom’s sovereign wealth fund added.

Moreover, PIF has appointed Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, Morgan Stanley Saudi Arabia and SNB Capital to evaluate the potential transaction options.

The deal is subject to obtaining required internal and regulatory approvals, including from the Capital Market Authority. No sale of shares will take place before further developments are announced to the market (including in relation to the structure of the sale, its process and timetable) and obtaining all applicable approvals, the fund concluded.

The PIF owns 1.4 billion shares of stc, or 70% of its SAR 2 billion capital, according to the data available on Argaam.