May 24, 2024 2:06 am
SEPI initiates purchase of Telefónica and acquires 3% of teleco’s capital | Companies

The Saudi STC has announced its acquisition of 9.9% of Telefónica’s capital, and in response, the Spanish government has become a shareholder once again. This comes after months of silence from the Saudi telecom company, with discussions taking place regarding its proposed entry into the company’s board of directors.

The State’s interest in Telefónica is part of its strategy to acquire a 10% stake in the company. Despite ongoing purchases over several days, the announcement was made only recently, with CaixaBank reducing its stake in Telefónica from 3.510% to 2.510% through the sale of financial coverage. However, this decision was made independently of the State’s acquisitions.

Telefónica expressed its confidence in its strategic plan and commitment to providing exceptional service to its customers, while CaixaBank communicated its reduction in stake as part of its investment strategy. Meanwhile, Criteria, the investment arm of La Caixa Banking Foundation, has continued to increase its position in Telefónica through recent acquisitions.

As these developments unfold, the Saudi STC’s intentions following its acquisition of shares remain uncertain. However, Telefónica remains focused on delivering value to its shareholders and customers amidst evolving shareholder dynamics and long-term strategic goals.

The State Society of Industrial Participations (SEPI) purchased an additional 10% of Telefónica’s capital to comply with the government’s directive to acquire up to 10% of shares. This represents an investment of about 700 million euros towards reaching that goal.

While these changes in ownership may bring challenges for Telefónica, it remains committed to maintaining high-quality service for its customers while continuing on course towards achieving long-term success as a leading telecommunications provider in Spain and beyond.

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