The major Saudi Telecom Company said in statement: The acquisition of the digital payment unit Stc Pay, estimated at 5 billion riyals ($ 1.3 billion), will finance its capital and support long-term expansion plans.
The Chairman of the Board of Directors of the Saudi Telecom Group, Mohammed bin Khalid Abdullah Al-Faisal, said: The investment reflects the company’s position as a digital enabler.
He added that the deal established the first Saudi company (Unicorn) and the first (Unicorn) company for financial technology in the Middle East.
Unicorn is generally known as private companies worth $ 1 billion or more.
Sources told Reuters last month that the Saudi Telecom Company had commissioned banks to arrange a possible initial sale of shares in its product and service development arm, solutions from STC.
Reducing dependence on cash is part of the Saudi government’s efforts to modernize the economy of the world’s largest oil exporter.
The Saudi Telecom Company said: The Stc Pay unit is the first financial technology company licensed by the Saudi Arabian Monetary Agency, the Saudi Central Bank, and has more than 4.5 million users.
The completion of the transaction is conditional upon obtaining all regulatory approvals from the relevant authorities, and upon completion of the transaction, Western Union pays $ 133.3 million (500 million Saudi riyals) for a 10 percent stake in the Stc Pay unit.
Western Union pays the amount of $ 66.67 million (SAR 250 million) later, in the event that the Stc Pay unit obtains a digital banking services license, and Western Union’s share of Western Union will rise to 15 percent in the Stc Pay unit.
Stc is supposed to inject an additional 400 million Saudi riyals in capital, raising the Stc Pay unit’s capital to 1.45 billion Saudi riyals after the transaction is completed.
Stc is also injecting an additional SAR 802 million into the capital of the Stc Pay unit if it obtains a digital banking services license.
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