| Element List | Explanation |
|---|---|
| Introduction | On 28 Thul-Hijjah 1443 (corresponding to 27 July 2022), the First Circuit in the Commercial Court in Dammam issued its ruling approving the list of creditors’ claims for Maan Abdul Wahid Al-Sanea, and Saad Trading, Contracting and Financial Services Company. The judgment accepted claims for both debtors amounted to SAR 23.9 billion, while the rejected claims for both debtors amounted to SAR 57.9 billion. Several creditors objected to the ruling, and the list of claims is still under review by the Court of Appeals in Riyadh. |
| Transaction Details | بتاريخ 28 ذو الحجة 1443ه )الموافق 27 يوليو 2022م( أصدرت الدائرة التجارية الأولى بالمحكمة التجارية بالدمام حكمها باعتماد قائمة مطالبات الدائنين لمعن عبد الواحد الصانع وشركة سعد للتجارة والمقاولات والخدمات المالية . بلغت المطالبات المقبولة لكلا المدينين مبلغ 23.9 مليار ريال سعودي، بينما بلغت المطالبات المرفوضة لكلا المدينين مبلغ 57.9 مليار ريال سعودي.
تقدم عدد من الدائنين بالاعتراض على الحكم، ومازالت قائمة المطالبات قيد الدراسة لدى دائرة الاستئناف بالمحكمة التجارية بالرياض. Through this transaction, TAWAL will acquire a total of 6,875 telecommunications site across the 3 countries where 4,821 existing sites and a plan to rollout 2,054 new sites. Acquisition subject to regulatory approvals in Bulgaria, Croatia and Slovenia countries. |
| Transaction Value | EURO 1.220 billion which equals approximately SAR 5 billion. |
| Transaction Terms | 20-year master services agreement securing United Group with long term leasing services from TAWAL, including a plan to rollout 2,054 new sites. |
| Parties of the Transaction | TAWAL and United Group through their subsidiaries. |
| Transaction Funding Method | The transaction will be funded through bank loans. |
| Transaction Execution Date | 2023-04-20 Corresponding to 1444-09-29 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | Telecommunications towers, rooftops and other passive infrastructure sites acquired on closing with a master services agreement securing United Group with long term leasing services on those same sites for a minimum duration of 20 years from TAWAL. |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | The towers’ assets have been recently carved-out from United Group in each of Bulgaria, Croatia and Slovenia countries, therefore no historical financial statements exist. |
| Transaction reasons | To support TAWAL’s expansion plans in the infrastructure sector, through entering into international markets. |
| Expected Impact of the Transaction on the Company and Its Operations | Adding 3 new countries to TAWAL’s international footprint, in addition to existing operations in Pakistan. The financial impact will be positive as TAWAL will buy the entire shareholding in the 3 entities which will become 100% owned subsidiaries, accordingly the financial results will be consolidated into TAWAL’s financial statements and later in stc’s financial statements upon completion of the transaction. |
| Related Parties | NA |
| Additional Information | The sale and purchase agreement -SPA- is subject to a number of pre-closing conditions, including – but not limited to – obtaining the approval from the relevant authorities in Bulgaria, Croatia and Slovenia, as well as other regulatory and commercial conditions. Any material developments will be announced in due course. |