Spain: State takes 10% Telefónica stake
December 20, 2023
From David Del Valle in Madrid
The Spanish state has become a shareholder in Telefónica with the acquisition of a 10 per cent stake in the company with an estimated value of €2 billion via state-owned holding company Sociedad Estatal de Participaciones Industriales (SEPI).
The move comes three months after the Saudi STC paid €2.1 billion for its stake, 4.9 per cent through direct holding and 5 per cent through financial instruments.
In a statement, Telefónica acknowledged the purchase, noting it was focused on its recently approved strategic plan aiming to “continue creating value for its shareholders and providing the best-in-class service for its clients”. The Spanish Government argues that the move is in line with strategies undertaken by other European countries like Germany and France. “The presence of a key public shareholder will reinforce the company’s ownership stability,” said the Ministry of Economy in its own statement.
The entry of the State into Telefónica is aimed at protecting the company which is regarded as being a strategic company in the country.