STC, one of Saudi Telecoms, has recently announced that it is going to file for an IPO for one of it subsidiaries namely STC Solutions.
Solutions provides communications and information technology, information technology management services and digital services to more than 24,000 clients across the public and private sectors, including many major governmental entities.
Solutions generates around $ 200M according to some estimates and growing… It is believed to be be very profitable as well; prospectus is yet to be published thou.
My first question is why would STC pursue such spin-off or curve out?
My second question is what are the key success factors for such divestiture?
Interested to hear your thoughts…