Saudi Telecom sets up new wholly-owned entity for data centers, cable assets
Saudi Telecom (STC) said on Wednesday it would transfer its data centers, international submarine cables and points of presence assets to a new wholly-owned company, a day after news it would invest $1 billion in those assets.
Government-controlled STC said in a statement the new entity would have an initial capital of 100 million riyal ($26.66 million), which STC would finance from its own resources.
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The initial value of the assets transferred was 2.1 billion riyal, while the new company was expected to spend 1.7 billion in additional investment, STC said in a bourse filing.
Saudi Arabia on Tuesday launched investments worth $6.4 billion in future technologies, including a $1 billion investment by STC, whose top shareholder is the Public Investment Fund (PIF).
The spin-off of the data center and submarine cable assets comes less than a year after STC sold shares in its tech business.
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