In a major development, Spain has once again become a shareholder of Telefónica after 26 years of absence. The government’s decision to acquire an additional 10% of the company’s capital comes in response to the Saudi STC’s acquisition of 9.9% of its shares. The State Society of Industrial Participations (SEPI) made the purchase, which represents an investment of around 700 million euros towards reaching 10% ownership.
The move is part of Spain’s strategy to acquire a 10% stake in Telefónica, announced last year. Despite ongoing purchases over several days, the announcement was only recently made public. Meanwhile, CaixaBank 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, and SEPI clarified that its purchases were initiated to comply with the government’s directive to acquire up to 10% of Telefónica’s shares.
Telefónica expressed its confidence in its strategic plan and commitment to providing exceptional service to its customers. CaixaBank communicated its reduction in stake as part of its investment strategy, which did not significantly impact the bank’s financial position. Meanwhile, Criteria, the investment arm of La Caixa Banking Foundation, continued to increase its position in Telefónica through recent acquisitions.
As these developments unfold, it remains uncertain what the Saudi STC intends following its acquisition of shares in Telefónica. Despite months of silence from the Saudi telecom company, discussions have taken place regarding its proposed entry into the company’s board of directors. Telefónica remains focused on delivering value to its shareholders and customers amidst evolving shareholder dynamics.
Overall, this move by Spain marks a significant shift in ownership for Telefónica and highlights how companies can navigate changing shareholder dynamics while remaining committed to their long-term strategic goals.
