Reuters: Saudi company interested in buying United Group

Saudi Arabia's STC Group is in the early stages of considering an offer for European telecom and pay-TV operator United Group, according to three people with knowledge of the potential deal, Reuters reports.

UK buyout group BC Partners, which acquired United Group in 2019 from KKR, is working with advisors on a sale due to start in the coming weeks, two sources told Reuters.

STC has started early stage work on a transaction, which may or may not result in a formal offer, a third person said.

A deal could value United Group around 8 billion euros (8.7 billion dollars) including debt, one of Reuter’s anonymous sources said.

Spokespeople for STC and BC Partners declined to comment.

If STC succeeds with a deal for United, it would further its expansion into the European telecoms sector. Last year the kingdom's largest telecoms operator said it had acquired a 4.9% stake in Spain's Telefonica, with the potential to increase it further to nearly 10%. STC´s subsidiary TAWAL also last year acquired United Group’s telecommunications tower assets in Bulgaria, Croatia and Slovenia, Reuters reminds.

BC Partners, they add, is considering different ways to maximize the value of a sale, including splitting it into different regions, two of the sources said.

The sale has also attracted attention from infrastructure funds interested in bidding for specific countries including Greece, Croatia and Slovenia, according to one of the sources.

Abu Dhabi-based Emirates Telecommunications said in April that it reviewed "relevant market opportunities" but had not entered into any negotiation or agreement to acquire United Group. This followed press reports that it was considering acquiring the European group.

United Group's revenue and earnings before interest, tax depreciation and amortization after leases, a measure of profitability, grew 7% to 2.7 billion euros and 988 million euros respectively last year, Reuters writes.

United Grupa BROADBAND INVESTMENT S.à r.l.

United Group

STC Group

BC Partners

KKR

TAWAL

Emirates Telecommunications

sale of United Group