New move in the chess game that follows in Telefónica after the irruption of Saudi Arabia in the capital last year. Criteria Caixa, the holding that manages the business assets of Fundació La Caixa, yesterday acquired a 5.007% stake in Telefónica’s capital. Until now Criteria Caixa – chaired by Isidre Fainé and whose CEO is Ángel Simón – had only a direct stake of 2.69% of the telecommunications operator. The investment in share purchases made in recent days was for an amount of around 550 million euros.
This percentage of 5% of Criteria Caixa is added to the 2.51% still held by CaixaBank, which is also held by Criteria and by the State through the FROB. Precisely, this time the State, through SEPI, declared a 3% stake in the operator, although its intention is to reach 10%.
Last year, Saudi Arabia, through the state company Saudi Telecom, acquired 4.9% of Telefónica’s shares, although it maintains another 5% through a system of stock market derivatives in anticipation of the Spanish government allows it to reach 9.9%. This move by a foreign state on the operator is what activated a process to ensure that Telefónica was controlled by Spanish shareholders.
In a statement, Criteria Caixa pointed out that “its main objective is to provide the telecommunications operator with maximum shareholder stability”. The sum of Criteria (5%), BBVA (4.8%), SEPI (3%) and CaixaBank (2.5%) gives a majority of 15.3% of the operator’s capital in the hands of Spanish shareholders. According to Criteria, the operator is “an essential company both for the country and for the sector on an international scale, with maximum shareholder stability”.
The holding company recalled that at the next general meeting of Telefónica shareholders – scheduled for Friday 12 April – the renewal of Criteria Caixa’s president, Isidre Fainé, will be voted on. But he will become Criteria’s Sunday advisor, instead of CaixaBank’s representative, as he was until now. Fainé is vice president of the operator. Telefónica sources have not commented on the latest shareholder change, although no appointment is expected at next Friday’s meeting.
According to La Caixa’s holding company “the operation is in line with Criteria Caixa’s investment policy, characterized by efficient and prudent management of its portfolio, focused on companies with an attractive dividend policy”. Criteria Caixa, which is the first investment holding company in Spain, remarked yesterday that “its stake in Telefónica is strategic and long-term”.
In fact, La Caixa’s relationship with Telefónica dates back to 1987 when the then savings bank first invested in the operator by acquiring 2.5% of its capital, Criteria recalled yesterday . In 1996 it acquired 5%, which was diluted to 3.6% due to the various capital increases. In 2004 it regained its share above 5%. Subsequently, the stake became part of the Criteria Caixa holding, as part of the corporate reorganization, and then returned to the financial institution once converted into the CaixaBank bank, in which it continues today with this 2.5 %.
Critreria Caixa also assured yesterday that “the relationship with Telefónica transcends the strictly shareholding, and the two companies maintain a historic commitment to education through technology and innovation as vehicles for social transformation”.
