Abdullah Al-Rabdi, a member of the Board of Directors of the Saudi Financial Association, said in an interview with Al-Arabiya that the Saudi Public Investment Fund has a previously announced strategy that focuses on investing in new and promising sectors, which requires looking into the asset portfolio and recycling capital in it.
He pointed out that among those assets are old investments in many stocks, some of which have reached a stage of maturity so that they can continue without strong support or interference from the fund, including the Saudi Telecom Company, which is one of the strongest telecom companies in the region.
Yesterday, Thursday, STC announced that it had received a letter from the Public Investment Fund, its largest shareholder, regarding the study of selling part of its shares in the company while retaining a majority stake of more than 50%.
Al-Rabadi added that the Public Investment Fund believes that it may be appropriate, according to market conditions, to exit part of its large stake in STC, which amounts to 70%, and to reach lower levels, to exploit the capital invested in it in other sectors.
He pointed out that reducing the fund’s ownership in the company does not mean that it is not promising or attractive, but rather it is due to the fund’s various interests so that it is viewed in terms of priority and special interests.
For its part, the Public Investment Fund said in a statement yesterday that the potential deal aims to enable the fund’s capital to be recycled into new investments that contribute to enhancing its long-term investment strategy.
He added that the potential deal is expected to contribute to supporting his strategy in establishing and developing new sectors, promoting the growth of the Saudi economy and diversifying its sources of income.