RIYADH: Saudi Telecom Company (STC) will embark on a major acquisition drive in the Middle East region in the short term, according to a top financial expert. Riyadh Capital Group in latest report said STC will also undergo reinvestment operations despite its ability to borrow after it announced recently a $1.2 billion Shariah deal for its Indonesian operation Axis to finance its mega expansion plan in that country. The report also pointed out that STC's global operations would contribute some 50 percent of the total revenues, up from the current 34 percent. To achieve this, the STC will invest in high growth markets, increase its stake in existing subsidiaries and seek attractive acquisition opportunities, the Riyadh Capital Group said in its report. The report noted that the buy rating at SR52 is currently under its fair price. Riyadh Capital further said the cut in the distribution of dividends does not reflect reduction or diminishing profits as much as it is a sound decision to achieve further growth in the future. The company's sound strategic investment in conserving cash will facilitate long-term growth, the report added.
