The State already owns 3.044% of Telefónica. The State Society of Industrial Participations (Sepi) communicated yesterday to the National Securities Market Commission (CNMV) that it had exceeded the 3% threshold in the company’s share capital, which means confirmation of the return of public capital to the multinational a quarter of a century after it was privatized.
Sepi has carried out purchases of shares in Telefónica in recent weeks, since the end of last year, but until Monday it did not reach 3% of the capital, explain sources familiar with the operation, hence the communication to the stock market regulator to which any company is obliged when it exceeds this percentage.
“In compliance with the agreement of the Council of Ministers of December, which orders Sepi to purchase shares up to a maximum of 10% of the company’s share capital, the State Company has reached 3.044%, communicating the acquisition of significant participations obtaining the threshold provided for in the regulations on the matter”, the company dependent on the Ministry of Finance explained in a statement.
At market close, Sepi had 175,039,412 voting rights in Telefónica, according to information from the CNMV. The terms of the acquisition, the cost of this 3% and future movements are “confidential”, explained public society sources.
Taking into account Telefónica’s share price in recent weeks, between 3.75 and 4 euros per share, the State would have paid out between 650 and 700 million euros for 3% of the telecom, as long as it had acquired the entire package in this price range The financing comes from a transfer from Chapter 8 (capital transfers) of the 2023 budgets. The public accounts are extended to 2024, but the Treasury assures that there is room for the operation and for future purchases.
Yesterday, Sepi defined itself as a shareholder “with a vocation of permanence” in Telefónica. Their participation will allow the company to provide “greater shareholder stability for the achievement of its objectives, contributing to the safeguarding of the strategic capabilities of a strategic company for national interests due to its leadership in telecommunications and its industrial capabilities , determinants in areas such as security and defense”, he explained.
On the other hand, Telefónica sources stated that the operation of the Sepi is the confirmation of the State Government’s plans and that the company was not aware of these acquisitions. The company valued the fact that the public company is part of its shareholding as a commitment to a “leading, strategic and attractive company not only in the field of telecommunications, but also in the development of the new digital era as a whole , both in Spain and internationally”. Telefónica is immersed in the execution of the 2023-2026 strategic plan and the objective, explained the multinational, is to “continue creating value for shareholders and provide the best service to customers”.
The announcement of the State’s entry into Telefónica took place after the irruption of Saudi Telecom (STC) in the telecom. The Arab operator currently has 4.9% of the capital, despite the fact that its objective is to achieve 9.9% within a year after obtaining regulatory authorizations. The president of Telefónica, José María Álvarez-Pallete, met a little less than a month ago with the CEO of Saudi Telecom (STC), Olaian Alwetaid, to address aspects related to this shareholding that is already reporting the first dividends: the first payment amounted to about 42 million euros.
With the acquisition of 3%, it becomes Telefónica’s fifth shareholder, behind STC, BBVA, CaixaBank and Criteria Caixa and BlackRock. Criteria Caixa is gradually taking the stake that is leaving the banking entity, which yesterday dropped from 3.5% to 2.5%. At the Telefónica shareholders’ meeting, scheduled for April 12, the relevant shareholdings are expected to be updated.
