Spain acquires 3% stake in Telefonica
Reuters
Published Mar 25, 2024 18:12
Updated Mar 25, 2024 18:56
MADRID (Reuters) -The Spanish government has acquired a 3% stake in telecoms group Telefonica (BME:TEF.MC) through the state holding company SEPI, SEPI said on Monday after it reported the acquisition to the stock market regulator.
The government said last December it would acquire a stake of up to 10% in the Spanish company in a counterbalance to the acquisition of a stake in Telefonica by Saudi Arabia's STC.
"The entry of the SEPI, a shareholder with a long-term commitment, will provide Telefonica with greater shareholder stability to achieve its objectives, contributing to safeguarding the strategic capabilities of a company that is strategic for (Spain's) national interests," SEPI said in a statement.
It said Telefonica is strategic due to its leadership in the telecommunications sector and its industrial capabilities, including areas such as security and defence.
STC built a 9.9% stake in Telefonica worth 2.1 billion euros in September. Its holding consists of 4.9% of Telefonica's shares and financial instruments that give it another 5% in so-called economic exposure to the company.
As Telefonica is considered a defence service provider, the Defence Ministry has a say in acquisitions and holdings between 5% and 10%, unless the buyer commits not to request a seat on the board.
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Written By: Reuters
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