Under the patronage of SAMA’S ( Saudi Arabian Monetary Authority governor, stc Group announces an agreement with Western Union, a leader in cross-border, cross-currency money movement and payments, to sell a minority stake of up to 15% of the Saudi Digital Payment Company "stc pay" (a subsidiary company owned by stc Group 100%) to Western Union for up to $200 million, equivalent to valuing 5 billion riyals of the company. Western Union’s investment will be used to finance stc pay's capital and support long-term expansion plans.
The completion of the transaction will be conditional upon obtaining all relevant regulatory approvals.
The agreement will have a positive impact on stc pay in the short and long run, that will have a positive operational and financial impact moving forward. The amount collected from this deal will be used to enhance stc pay growth and its own resources in order to support the expansion plans.
HRH Prince Mohammed bin Khalid Abdullah Al Faisal Chairman of stc group , said: "We are proud that our work is contributing to the success and ambition of the country vision towards thriving and diversified economy . We are highly encouraged by the fact that such a company as Western Union has determined that at this moment in time they are prepared to make a significant Foreign Direct Investment in stc pay. For us at stc group it reflects our position as a digital enabler and an ICT regional champion as we celebrate the creation of the first Saudi unicorn and the first fintech unicorn in the Middle East."
Nasser Alnasser stc group CEO said, “As a digital enabler and a pioneer in the digital transformation, we aspire to play a vital role in the vision of the Saudi Arabian Monetary Authority (SAMA) in many initiatives that support creativity and developing the financial services, as Fintech is a pillar of stc strategy.
Alnasser added : "We are proud that stc pay has not only reached unicorn status but also has been recognized as a fintech national champion in a very short time, and that motivates us to devote more efforts to provide more products to enhance the customer's experience."
Hikmet Ersek, CEO and President, Western Union commented: “stc pay has rapidly developed a leading regional digital payments service over the past two years and has been a highly successful digital partnership for Western Union. Looking forward, we believe stc pay is well positioned for continued expansion in digital payments and we are excited about the opportunity to extend our relationship.”
It is worth mentioning that stc pay is the first licensed FinTech company in the Kingdom by the Saudi Arabian Monetary Authority (SAMA) and the largest digital wallet in the MENA region with more than 4.5 million users. It has been established in harmony with the objectives of Saudi VISION 2030 to support the growth of the national economy and achieve the strategic goals of the financial sector program, which is to enhance financial inclusion and reduce dependence on cash.
The Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. Our omnichannel platform connects the digital and physical worlds and makes it possible for consumers and businesses to send and receive money and make payments with speed, ease, and reliability. As of September 30, 2020, our network included over 550,000 retail agent locations offering our branded services in more than 200 countries and territories, with the capability to send money to billions of accounts. Additionally, westernunion.com, our fastest growing channel in 2019, is available in over 75 countries, plus additional territories, to move money around the world. With our global reach, Western Union moves money for better, connecting family, friends, and businesses to enable financial inclusion and support economic growth. For more information, visit www.westernunion.com.
Source: stc Press Release