stc pay to become digital bank with SAR 2.5bn in capital

Riyadh – Mubasher: The Saudi Digital Payments Company (stc pay), a subsidiary of the listed Saudi Telecom Company (stc), will obtain a licence to become a digital bank upon the approval of the Saudi Council of Ministers.

stc pay will be operating with a paid-up capital worth SAR 2.5 billion, according to a bourse filing on Wednesday.

In order to reach this capital, the parent company stc will pump an additional SAR 802 million to keep the 85% ownership of stc pay’s capital. In addition, Western Union will invest, through a subsidiary, SAR 750 million to own 15% of stc pay’s capital.

Completing the transformation transaction is still subject to approvals of the Saudi Central Bank (SAMA) and other concerned authorities.

Last November, stc signed an agreement with Western Union to sell a 15% stake stc pay for $200 million.

On the other hand, Saudi Arabia’s Public Investment Fund (PIF) is reportedly considering divesting part of its stake in stc.

Mubasher Contribution Time: 23-Jun-2021 07:03 (GMT)
Mubasher Last Update Time: 23-Jun-2021 07:03 (GMT)