The Public Investment Fund (PIF) announced on Thursday that it is exploring a sale of part of its stake in Saudi Telecom Company (STC) targeting international and local institutional investors and retail investors, while maintaining majority stake of more than 50 percent in the company. The potential transaction is in line with the PIF's strategy to recycle its capital to new investments. The potential transaction is expected to contribute to PIF's establishment and development of new sectors, in addition to strengthening the Saudi economy's growth and diversifying its sources of income. The potential transaction 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 transaction will have full regard to the prevailing market conditions and the interests of the company's existing shareholders. As a national champion, STC plays an integral role in Saudi Arabia's Information and Communication Technology sector. The PIF affirms its commitment to supporting the strategic objectives of STC, and its confidence in the company's competitive capabilities. PIF has appointed Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, Morgan Stanley Saudi Arabia and Saudi National Bank Capital to evaluate the potential transaction options. The execution of the potential transaction is subject to obtaining internal approvals and the required 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. — SG
