RIYADH, Saudi Arabia -- Saudi Oger, the controlling shareholder of Oger Telecom Limited (Oger Telecom), announces that it has reached substantive agreement with Saudi Telecom Company (STC) for the sale of an interest of 35% in Oger Telecom based on a gross value of US$2.85 billion in cash (including 35% of a pre-completion return of capital of US$833 million implying a net price for STC of US$2.56 billion), valuing 100% of the equity of Oger Telecom at approximately US$8.14 billion.

The transaction remains subject to final agreement of legally binding documentation. Completion of the transaction will be subject to various approvals and certain other customary conditions precedent. Saudi Oger will maintain a controlling interest in Oger Telecom after the conclusion of this transaction.

Mohammed Hariri, Chairman of Oger Telecom and Senior Vice President of Saudi Oger, said: “Saudi Oger has made great strides in its telecom activities since its initial investment in Cell C and subsequent acquisition of a controlling interest in Türk Telekom. This transaction represents a major step in the development of Oger Telecom and confirms the benefits of Saudi Oger’s telecoms strategy. We welcome STC as a shareholder”.

Dr. Paul Doany, CEO of Oger Telecom, said: “We are delighted to be able to announce this investment by STC in Oger Telecom”.

Saudi Telecom Co. (STC)