Saudi Telecom Company (STC) [7010.SE] and Mobily [7020.SE] have signed a memorandum of understanding (MoU), which stipulates that both operators will explore options to jointly extract value from their respective tower portfolio, according to a company disclosure. Both operators are seeking to reduce their expenditures on telecom towers and lower their operating expenses. The MoU is effective for three months commencing 31 July and may be extended for 30 calendar days upon agreement of both parties. STC and Mobily may also consider involving other licenced operators whose objectives align with them. The MoU does not indicate the inclusion of any of STC’s nor Mobily’s related parties. (Company disclosure)   Saudi Telecom Company: SAR61.46 as of 31 July 2016, Rating: Buy, FV: SAR79.00 per share, MCap: USD32,779mn, STC AB / 7010.SE Mobily: SAR23.70 as of 31 July 2016, Rating: Neutral, FV: SAR30.39 per share, MCap: USD4,866mn, EEC AB / 7020.SE