STC to book USD166m gain in 4Q14 on land transfer

24 Dec 2014

Saudi Telecom Company (STC), the country’s leading telco in terms of subscribers, has announced that it expects to book a SAR621 million (USD166 million) gain in Q4 2014 due to transfer of some of its land holdings to the government. Previously, in June, the company said that the state had seized a 1.05 million square-metre plot in the Al Faisaliah district of Riyadh, with a book value of SAR105.3 million. Earlier this week, the operator confirmed that the government had begun transferring ownership of the land in exchange for compensation of SAR726.3 million. However, the telco added that it did not consider the compensation amount to be fair, and disclosed that it would appeal the decision. Reuters writes that some estimates suggest that the land appropriated from STC could be worth between SAR.36 billion and SAR2.83 billion.

Saudi Arabia, Saudi Telecom Company (stc)