Saudi "Tawal" Raises $1.42 Billion to Acquire European Telecom Towers from "United Group"

The Saudi telecom company (STC) announced on Sunday that its subsidiary, Tawal, secured funding through Sharia-compliant bank loans amounting to a total of $1.42 billion to acquire three tower companies from United Group in Bulgaria, Croatia, and Slovenia. In April, Tawal agreed to purchase the tower companies for €1.22 billion ($1.34 billion) from United Group, marking its first entry into the European telecom market. The Saudi telecommunications company stated in a disclosure that the deal is fully financed by Sharia-compliant bank loans, and that the necessary approvals were obtained, with the transaction completing on August 24. The disclosure mentioned that the National Commercial Bank, the largest bank in the Kingdom, contributed $1.02 billion, including $300 million as a bridging loan. Additionally, Dubai Islamic Bank and First Abu Dhabi Bank contributed $250 million and $150 million, respectively. STC stated that the financial impact of the transaction will be reflected in third-quarter earnings.