Sat. Jun 22nd, 2024
Government acquires 3% stake in Telefnica, becoming a new shareholder.

The State Industrial Participation Company (SEPI) has announced its acquisition of a 3% stake in Telefónica, following the Government’s authorization to become a shareholder in the company. With this investment, SEPI aims to provide Telefónica with greater shareholder stability and contribute to safeguarding its strategic capabilities.

The stake consists of 175 million shares valued at approximately 700 million euros based on market prices, which have risen to 3.99 euros in recent weeks. With SEPI’s entry and CaixaBank’s reduction of 1% of its shares in the market, the State becomes the fourth largest shareholder in Telefónica.

Telefónica emphasized its leading role in telecommunications and digital development as justification for the investment. In agreement, SEPI highlighted Telefónica’s strategic importance and industrial capabilities in areas such as security and defense.

The Council of Ministers authorized SEPI to purchase up to 10% of Telefónica in December. Although there were initial doubts due to financial constraints, the operation gained momentum as Telefónica’s shares surged. CaixaBank also reduced its stake in Telefónica, aligning with its strategy to rotate its position in the company.

The reduction in CaixaBank’s participation diminishes the “Spanish core” in Telefónica, composed of BBVA and CaixaBank’s shares. The Government aims to strengthen this core by acquiring 10% of Telefónica through SEPI. The operation is part of a broader strategy involving financial restructuring and stake adjustments within the company.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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