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Factbox-Gulf firms' investments in European telecoms

Published 06/09/2023, 16:22
Updated 06/09/2023, 16:26
© Reuters. The logo of Spanish Telecom company is displayed atop the company's building in Madrid, Spain, September 6, 2023. REUTERS/Violeta Santos Moura
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(Reuters) - Saudi Arabian STC Group's purchase of a 9.9% stake in Spain's Telefonica (BME:TEF) on Tuesday became the latest example of Middle Eastern companies investing in European telecom operators.

Between STC and UAE's e&, they have spent over 5 billion euros in four deals in Europe in the last year. Here are some of the recent deals:

PPF GROUP

United Arab Emirates-based telecoms group e& in August agreed to pay 2.2 billion euros ($2.4 billion) up front to buy a controlling stake in Czech PPF Group's telecom assets in Bulgaria, Hungary, Serbia and Slovakia.

TELEFONICA

Saudi Arabia's STC on Tuesday said it had built up a 9.9% stake in Telefonica worth 2.1 billion euros, becoming the Spanish telecom group's top shareholder.

UNITED GROUP

Saudi Arabia's TAWAL, a subsidiary of STC, in August raised $1.42 billion in Islamic financing to fund the acquisition of United Group's mobile telecoms infrastructure unit in Bulgaria, Croatia and Slovenia.

VODAFONE

UAE's e& increased its stake in Vodafone (LON:VOD) to 14% in February, saying its rationale was unchanged from May 2022, when it bought a 9.8% stake to "enhance and develop its international portfolio". CEO Hatem Dowidar told CNBC Arabia in August e& was seeking to increase the stake to 20%.

($1 = 0.9313 euros)

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