stc Group sticks to plan for 9.9% Telefonica stake
Now Reading
stc Group sticks to plan for 9.9% Telefonica stake, sources say

stc Group sticks to plan for 9.9% Telefonica stake, sources say

The telecoms operator amassed a EUR2.1bn ($2.23bn) stake, consisting of 4.9 per cent of Telefonica’s shares and financial instruments in September

Avatar
Saudi Arabia’s stc Group 9.9% Telefonica stake

Saudi telecoms group (stc Group) has not changed its plans to effectively raise its stake in Telefonica to 9.9 per cent, two sources familiar with the matter told Reuters, following a Spanish newspaper report that it now only intended to keep its current 4.9 per cent stake.

In September, Saudi Arabia’s largest telecoms operator amassed a stake worth EUR2.1bn ($2.23bn), consisting of 4.9 per cent of Telefonica’s shares and financial instruments that give it another 5 per cent in so-called economic exposure to the company.

While it acknowledged seeking to become Telefonica’s top shareholder, it said then it did not intend to acquire control or a majority stake.

El Economista newspaper reported on Monday, citing people familiar with the operation, that stc no longer planned to convert the 5 per cent it holds in derivatives into voting shares.

Telefonica and stc Group declined to comment on the report. The Spanish government also had no comment.

stc Group invests in Telefonica

Asked about the report, one of the sources familiar with the matter said stc Group’s position had not changed from what was announced in early September.

As Telefonica is considered a defence service provider, the Spanish Defence Ministry has a say in acquisitions and holdings between 5 per cent and 10 per cent unless the buyer commits not to request a seat on the board.

stc has still not requested authorisation from the Spanish government to exercise the voting rights corresponding to the financial instruments.

On Tuesday, Spain’s state fund SEPI said it was considering whether to buy a stake in Telefonica, while Spanish banks BBVA and Caixabank, two major shareholders in the Spanish telecoms company, have welcomed stc Group’s investment and ruled out increasing their own stakes.

Read: Saudi telecom acquires 9.9% interest in Spain’s Telefónica

You might also like


© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top