United Group sells €1.22bn infrastructure unit to Tawal

Southeast European telecommunications services provider, United Group has confirmed it is to sell 100% of its mobile tower infrastructure unit in Bulgaria, Croatia, and Slovenia (TowerCo) to Saudi Arabia’s Tawal.

The sale of more than 4,800 towers is priced at €1.22 billion on a cash free and debt free basis.

Tawal is the largest integrated ICT infrastructure provider in the MENA region and owns a portfolio of more than 16,000 mobile towers, the transaction marks its first in the European telecoms sector.

United Group said the sale follows an industry trend of separating and monetising mobile tower infrastructure by telecom operators in Europe and globally.

Proceeds from the sale will allow United Group to significantly deliver the business, freeing up cash flow for future growth. The transaction will also enable continued investment in the mobile network including plans to roll out 2,000 additional sites over the next 20 years.

In the past three years, United Group has cemented its position as the leading multi-play telecoms and media company in Southeast Europe. It has successfully expanded into affluent EU markets including Greece, Bulgaria, and Croatia. The company operates a diverse range of assets spanning mobile and fixed line internet services, pay TV and media.

Speaking on the sale, Viktoriya Boklag, CEO of United Group CEO, said:“We are delighted to have successfully crystalised the value of our tower assets in a deal that enables us to delever and navigate global macro-economic pressures. This will support continued investment in our portfolio companies to ensure they remain competitive in their respective markets. We are delighted to have found a strong partner in Tawal and will look for further opportunities to work with them as they expand their footprint in the European market.”

“This partnership with United Group marks our first investment in the European market. The partnership supports our goal to continue to provide innovative and efficient ICT infrastructure solutions to our partners and deliver the quality of services we are renowned for,” said Mohammed Alhakbani, CEO of Tawal.

Olayan Alwetaid, chief executive officer, stc Group, said: “Our agreement with United Group represents an exciting new chapter for Tawal and the wider stc Group. The agreement is a significant milestone in our ambitious growth strategy and the expansion of our international footprint. We are already leading the transformation of Saudi Arabia’s digital capabilities and this transaction reinforces our commitment to investing in best-in-class technology and infrastructure to lead the way in enabling the world to connect.”