• Sat. May 25th, 2024

Spain Retakes Stake in Telefónica: State Invests €700 Million Amidst Uncertainty Over Saudi STC’s Intentions

BySamantha Nguyen

Mar 25, 2024
SEPI initiates purchase of Telefónica and acquires 3% of teleco’s capital | Companies

The State of Spain has once again become a shareholder of Telefónica, 26 years after its previous ownership. This decision comes after the Saudi STC announced its acquisition of 9.9% of the company’s capital. In response, the government instructed the State Society of Industrial Participations (SEPI) to purchase an additional 10% of the company. The SEPI already holds 3% of Telefónica’s capital, and is required to disclose its ownership once it exceeds that threshold. The recent purchase represents an investment of about 700 million euros towards the goal of reaching 10% ownership.

The State’s interest in Telefónica is part of its strategy announced last year to acquire a 10% stake in the company. Despite ongoing purchases over several days, the announcement was made only recently. Additionally, CaixaBank, a major shareholder, reduced its stake in Telefónica from 3.510% to 2.510% through the sale of financial coverage. This decision was made independently of the State’s acquisitions.

SEPI clarified that its purchases were initiated to comply with the government’s directive to acquire up to 10% of Telefónica’s shares. However, this move did not significantly impact CaixaBank’s financial position.

Meanwhile, Criteria, the investment arm of La Caixa Banking Foundation, has continued to increase its position in Telefónica through recent acquisitions. While these developments unfold, the Saudi STC’s intentions following its acquisition of shares remain uncertain.

Despite months of silence from the Saudi telecom company, discussions have taken place regarding its proposed entry into the company’s board of directors

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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