June 16, 2024

SEPI Acquires 3% Stake in Telefónica, Becoming a Shareholder in the Company and Strengthening the ‘Spanish Core'”.

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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, with the approval of the Government to become a shareholder in the company. SEPI stated that their investment will 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 highlighted its leading role in telecommunications and digital development as justification for the investment. In agreement, SEPI emphasized 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 as part of a broader strategy involving financial restructuring and stake adjustments within the company.

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