Spain Enters as the New Telefonica Shareholder

Spanish government acquired a 3% stake in Telefonica through a state holding company. The move is part of attempts to counterbalance Saudi operator stc’s presence in the company.

State-held company Sociedad Estatal de Participaciones Industriales (SEPI) bought 175 million shares, worth around €698 million, in the first step of a wider government plan to buy a stake of up to 10% in the operator. Spain’s economic ministry outlined plans in December last year to acquire a stake in Telefonica, a move which will see the nation’s investment fund vie with stc to be the operator’s largest shareholder.

The announcement came three months after stc splashed €2.1 billion on a stake totaling 9.9%. At the time, Spain said it would look into the potential implications of stc’s buy, with Telefonica considered of strategic importance due to its position in the telecoms sector, and its industrial capabilities in areas including defense and security. SEPI stated that as a long-term shareholder, it will provide Telefonica with greater stability to achieve its objectives and contribute to safeguarding strategic capabilities.