Saudi Telecom Company (stc) announces its intention to establish a company specialized in datacenter hosting, international and regional connectivity
Feb 2, 2022
Saudi Telecom Company - stc - (the Company) announces its intention to establish a company specialized in datacenter hosting, international and regional connectivity “The new company”, with its head office to be located in the Kingdom of Saudi Arabia.
The new company's initial capital will be SAR 100 million and it will be 100% owned by stc. stc will finance this investment from its own resources.
stc intends to transfer its data centers, international submarine cables and international points of presence assets to the new company, knowing that the initial valuation of these assets amounted to approximately (SAR 2.1 billion) as of December 2021. Further, the new company is expected to inject (SAR 1.7 billion) as an additional investment, which brings the total investment to (SAR 3.8 billion).
These assets and investments will be subject to a detailed evaluation at a later stage in order to determine their final valuation; in addition to determining the final capital needed for the new company upon completion of the necessary regulatory requirements.
The establishment of the new company is expected to have a positive impact for stc, which cannot be determined until the completion of customary regulatory requirements and obtaining approvals from the relevant authorities.
The initiative to establish the new company will boost Saudi Arabia’s current position as the region’s digital hub and beyond, thru leveraging Saudi Arabia’s geographical location at the heart of the Middle East as a hub connecting Asia, Africa and Europe. The new company will manage and continue to invest in submarine cables including new ones landing in multiple points of Saudi Arabia. It will also manage Data Centers and continue to invest in new ones across KSA and the region and other digital infrastructure to attract Foreign direct investments and localize contents and cloud services to realize Saudi Arabia’s digitization plans.
Stay up to date with the latest industry developments: sign up to receive TelecomTV's top news and videos plus exclusive subscriber-only content direct to your inbox – including our daily news briefing and weekly wrap.