PROPERTY SEARCH
PROPERTY SEARCH
Spain buys shares in Telefonica to become largest stakeholder ahead of Saudi deal
The government has bought a 10% stake in Telefónica after a Saudi telecoms group announced it had acquired a 9.9% stake in September
Spain’s Council of Ministers has agreed to order the State Society for Industrial Holdings (Sociedad Estatal de Participaciones Industriales or SEPI) to acquire up to 10% of the shares of Spanish telecoms company Telefónica. In this way, the State would become the company’s largest shareholder, according to the public holding company, a move they hope to complete before the official entry of the Saudi group STC in the company’s shareholding, a transaction that has yet to be approved by the Spanish government.
In the words of a communiqué from the public holding company to the National Commission for the Shares Market (Comisión Nacional del Mercado de Valores or CNMV) this Tuesday December 19, “Telefónica is a leading telecommunications company, both in Spain and internationally. It carries out a range of activities that are of crucial importance for the economy, the productive fabric, research, security, defence and, in short, the well-being of citizens.”
It goes on, “SEPI’s participation will provide Telefónica with a greater shareholding stability for the company to achieve its objectives and, therefore, will contribute to safeguarding its strategic capabilities. SEPI will proceed to carry out the formalities and actions that will enable the process to be set in motion so that, minimising the impact on the share price, it can complete the acquisition of the necessary volume of shares.”
Saudi telecommunications company STC Group announced in September that it had acquired a 9.9% stake in Telefónica for 2.1 billion euros.
In other news: Madrid schools to stop teaching subjects in English
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