Categories: Economy

Spain’s Growing Stake in Telefónica: What You Need to Know

The Saudi STC has recently acquired 9.9% of Telefónica’s capital, prompting the Spanish government to take action. In response to the acquisition, the State Society of Industrial Participations (SEPI) was instructed to purchase an additional 10% of the company’s shares, bringing its total ownership to 13%. This move was part of a larger strategy announced last year by the government to acquire a 10% stake in Telefónica.

While CaixaBank reduced its stake in Telefónica from 3.510% to 2.510%, this decision was made independently of the State’s acquisitions. SEPI clarified that its purchases were initiated solely to comply with the government’s directive and did not reflect any changes in its investment strategy.

Meanwhile, Criteria, the investment arm of La Caixa Banking Foundation, has continued to increase its position in Telefónica through recent acquisitions. Despite these developments, there is still uncertainty surrounding the Saudi STC’s intentions following its acquisition of shares in the company.

Despite months of silence from the Saudi telecom company, discussions have taken place regarding its proposed entry into Telefónica’s board of directors. However, Telefónica remains focused on delivering value to its shareholders and customers amidst evolving shareholder dynamics and ongoing investments from different sources.

The State’s interest in acquiring a stake in Telefónica is part of a broader strategy aimed at strengthening Spain’s telecommunications industry and maintaining economic growth. The move is also seen as a way for Spain to diversify its investment portfolio and reduce reliance on foreign ownership.

Telefónica expressed confidence in its strategic plan and commitment to providing exceptional service to customers despite ongoing changes in ownership. The company said it will continue working towards achieving long-term goals while adapting to evolving market conditions.

In conclusion, while there may be uncertainty surrounding some aspects of this deal, one thing is clear: Spain’s involvement in Telefónica represents an important step forward for both companies and for Spain’s telecommunications industry as a whole.

Samantha Johnson

As a content writer at newsnmio.com, I craft engaging and informative articles that aim to captivate readers and provide them with valuable insights. With a background in journalism and a passion for storytelling, I thoroughly enjoy delving into diverse topics, conducting research, and producing compelling content that resonates with our audience. From breaking news pieces to in-depth features, I strive to deliver content that is both accurate and engaging, constantly seeking to bring fresh perspectives to our readers. Collaborating with a talented team of editors and journalists, I am committed to maintaining the high standards of journalism upheld by our publication.

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