Spain concludes purchase of 10% stake in Telefonica
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 20 2024
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Source: reuters
- Spanish Government Acquires 10% Stake in Telefonica: The Spanish government purchased a 10% stake in telecoms group Telefonica to counterbalance a similar acquisition by Saudi Arabia's STC.
- SEPI's Purchase Details: SEPI, the state holding company, bought over 567 million shares in Telefonica at an average price of 4.0295 euros per share, totaling around 2.3 billion euros.
- Saudi Arabia's STC Stake in Telefonica: STC acquired a 9.9% stake in Telefonica worth 2.1 billion euros, consisting of 4.9% of shares and financial instruments for another 5%.
- Government's Aim with SEPI's Entry: The government aimed to enhance Telefonica's shareholder stability and protect its strategic capabilities as it is a key player in the telecommunications sector and considered a defense service provider.
- Government's Board Representation Request: After reaching a 7% stake, the government requested a board seat at Telefonica and proposed Carlos Ocana to represent its interests.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
