Saudi Telecom Agrees To Buy United Group Towers For $1.2 Billion

The Tawal infrastructure arm of the state-backed corporation will pay cash for a portfolio of over 4,800 towers across Bulgaria, Croatia, and Slovenia, according to sources.

It had previously stated that it was close to reaching an agreement to purchase the assets from United Group, which is financed by buyout company BC Partners.

Tawal already has over 16,000 towers and is making its first step into Europe with the acquisition.

Middle Eastern telecom carriers flush with cash have recently begun to increase their foreign interests, with Emirates Telecommunications Group Co. becoming the largest shareholder in Vodafone Group Plc, with a $4 billion holding.

“We are delighted to have successfully crystallized the value of our tower assets in a deal that enables us to delever and navigate global macroeconomic pressures,” United Group Chief Executive Officer Victoriya Boklag said in the statement.

In Europe, acquisitions of digital infrastructure assets have been on the rise. Last year, Vodafone and Deutsche Telekom AG decided to sell multibillion-dollar shares in their tower companies to investment groups, while Brookfield Asset Management Ltd. agreed to buy data centre provider Data4 this month.

United Group was advised by Goldman Sachs Group Inc. on the acquisition, which is slated to completion in the second half of 2023.