| Element List | Explanation |
|---|---|
| Introduction | Saudi Telecom Company (stc) announces that on 05-9-2023 it completed an acquisition of a 9.9% interest in Telefonica for a total consideration of EUR 2.1 billion (approx. SAR 8.5 billion). |
| Transaction Details | stc has acquired a 9.9% interest in Telefonica, for a total consideration of EUR 2.1 billion (approx. SAR 8.5 billion), representing 569,295,356 shares. |
| Transaction Value | EUR 2.1 billion which equals approximately SAR 8.5 billion. |
| Transaction Terms | N/A |
| Parties of the Transaction | N/A |
| Transaction Funding Method | The transaction has been funded through a mixture of stc’s own resources and bank debt. |
| Transaction Execution Date | 2023-09-05 Corresponding to 1445-02-20 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | Telefonica is a leading European telecommunications operator and has a unique portfolio of best-in-class infrastructure assets and cutting-edge technology platforms, as well as a significant presence in three of the largest European markets, namely Spain, Germany and the UK, in addition to its large presence in Latin America that includes Brazil and other countries. |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | Telefonica is a listed company and its financial statements are publicly available through the following link: https://www.telefonica.com/en/shareholders-investors/ |
| Transaction reasons | This investment is in line with stc’s growth strategy to expand by acquiring stakes in value-added strategic assets in promising markets, along with benefiting from the return on these investments to support stc’s growth, expansion, and capital recycling efforts. In turn, these efforts will enhance stc’s ability to invest in new domains and maximize shareholder returns in a sustainable manner. |
| Expected Impact of the Transaction on the Company and Its Operations | The impact of this investment will be positive in the long term. |
| Related Parties | None |
| Additional Information | According to the regulations, stc has voting rights over 4.9%. In addition, stc entered into financial instruments that will provide it with voting rights over the remaining acquired interest after obtaining approval from the relevant authorities. This investment will not affect stc’s approved dividend policy. Any material further development will be announced in due course. |
