The Saudi Telecom Company (STC) announced the signing of an agreement with Western Union, yesterday, Saturday, to sell a stake in the Saudi Digital Payments Company -stc pay- ( 100% affiliated and owned) and with a value of $ 200 million (equivalent to 750 million riyals).
and (STC) said in a statement to the Saudi market (Tadawul) that the transaction proceeds will be used to finance the capital of the stc pay company; To support the company's expansion plans.
and the company clarified that the completion of the transaction is conditional upon obtaining all regulatory approvals from the relevant authorities.
and indicated that upon completion of the transaction, the buyer pays $ 133.3 million (equivalent to 500 million riyals) for a 10% stake in stc pay.
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and continued: The buyer pays the amount of 66.67 million dollars (equivalent to 250 million riyals) later, in case stc pay obtains a digital banking services license to raise the share of The buyer to 15% in the subsidiary.
and stc pay's capital is 400 million riyals, in addition to a partner loan from STC in the amount of 148 million riyals, which will be transferred as capital upon completion of the transaction. < / p>
The financial impact is expected to be positive in the long term. This transaction has no effect on the profit or loss statement of Saudi STC Company, in accordance with international accounting standards.
