The State Company for Industrial Participations (SEPI) has informed the National Securities Market Commission (CNMV) after the market close on Monday that its participation in Telefónica’s share capital has reached 5%.
The SEPI thus takes another step in the mandate it received from the Council of Ministers that orders the purchase of shares up to 10%, minimizing the impact on the price and complying with the communications of significant participations established in the regulations.
As reported in a public statement, this entry into the Telefónica shareholding occurs “with a vocation for permanence, the participation of SEPI provides greater shareholder stability to the company to achieve its objectives and contributes to the protection of strategic capabilities of a key company in the telecommunications sector and determinant in most of the industrial capabilities and areas of knowledge that affect the essential interests of defense and national security.
The Government decided to enter SEPI into the capital of Telefónica last December to shore up the presence of Spanish capital in what was then the main Spanish telecommunications company.
The agreement came to counteract the presence of the Saudi Telecom group, owned by the sovereign fund of Saudi Arabia, which in September had acquired 4.9% of Telefónica’s capital and announced that it had the right to options on derivatives for an additional 5%. .
Since then, tensions in the company chaired by José María Álvarez Pallete have been continuous since then. Less than a week ago, Criteria doubled its stake in the company to 5%, becoming the main shareholder of the ‘teleco’ until this Monday. From today it shares that first place with SEPI, although the organization will continue its climb to unseat it in a short time. In third place, Saudi Telecom continues with 4.9% and is followed by the BlackRock fund, with 4.98% of the capital.
As on previous occasions, the financing of the operation has been charged to the State budget. Specifically, as confirmed by sources from the Ministry of Finance, “it again comes from a transfer from chapter 8 (capital transfers) of the 2023 Budgets, which are extended in 2024.” The First Vice Presidency adds that there is room for the operation and for future purchases “up to 10%.”
With Sepi’s capital increase in Telefónica, the theory that the State wants to occupy a seat on the Board of Directors gains weight. With this representation, it would be difficult for him to be prevented, although to access that representation he has two options: either he requests an extraordinary meeting or he would have to wait for the ordinary one, which will not be held until after a year, since the last one took place last Friday.
