STC Group CEO Nasser Al-Nasser confirmed that the success of STC’s investment in Careem aligns with its Dare Strategy which focus on growth and digital transformation, in line with the objectives of the Kingdom's Vision 2030.
Saudi Telecom Company STC announces that Careem, in which the Company owns a direct stake of around 8.8%, has reached an agreement with Uber on 26/03/2019, for Uber to acquire Careem for a value of around USD 3.1 billion, payable as per the following: (i) around USD 1.4 billion in cash and (ii) around USD 1.7 billion in Uber’s convertible notes, subject to adjustments (the “Transaction”). The Transaction is expected to be closed after obtaining the necessary regulatory approvals.
The amount that the Company will be receiving from the Transaction will be around USD 274 million, partly in cash and partly in Uber’s convertible notes, with the exact split depending on the final allocation at the closing of the Transaction.
It is worth mentioning that the Company’s investment in Careem was made in January 2017 for an amount of USD 100 million.
In addition to the Company's direct investment in Careem, the Company has invested indirectly in Careem through two owned funds, which are:
- STC Ventures (STCV), which owns a 6.4% stake.
- Saudi Technology Ventures (STV), which owns a 2.9% stake.
With regard to the period in which the positive financial impact on the Company’s financials will occur, for both the direct and indirect investments, it will be determined once the Transaction is finalized and the final regulatory approvals obtained.
Source: STC Press Release