| Element List | Explanation |
|---|
| Introduction | Saudi Telecom Company (stc) announces the sale of the land owned by stc located in Khobar city in Al Murjan Area South of Al Aziziah district on King Fahad Road. |
| Transaction Details | Selling a vacant land owned by stc located in Khobar city in Al Murjan Area South of Al Aziziah district on King Fahad Road with a total area of 4,100,322.87 square meters at a price of SAR 336 per square meter, through a public auction. |
| Transaction Value | SAR 1,378 million (excluding the real estate transaction tax and the brokerage fees). |
| Transaction Terms | 1. Paying a non-refundable deposit in an amount of SAR 10 million for stc. |
2. Promissory note in an amount of SAR 1,368 million for stc
| Parties of the Transaction | 1. Saudi Telecom Company -stc (seller). |
2. Hasan Abdulrahman Almusleh Alqahtani (buyer).
| Transaction Execution Date | 2023-01-17 Corresponding to 1444-06-24 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | Vacant land. |
| Asset Book Value | SAR 82 million. |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | N/A |
| Transaction reasons | In line with the stc’s strategy related to maximizing the assets return, and to support capital recycling to strengthen stc's ability to invest in new domains. As a result, stc has adopted a strategy for its owned land bank, which revolves around four main pillars, that include selling, leasing, developing, and retaining. |
| Expected Impact of the Transaction on the Company and Its Operations | Interim consolidated statement of profit or loss will be positively impacted by approximately SAR 1,296 million once all related procedures are completed which is expected to take place during 120 days from the transaction execution date as mentioned above. |
| Details of Using The Proceeds of the Asset Sale | The proceeds of the deal will be used to support stc in achieving its growth and expansion strategy along with maximizing its shareholders’ return thru increasing and diversifying stc’s investments and seizing the expected growth opportunities in the telecommunication & technology sector in the Kingdom of Saudi Arabia and the region. |
| Related Parties | N/A |
| Additional Information | Any material developments will be announced in due course. |
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