• Tue. Jun 18th, 2024

Government Takes Stake in Telefónica: Strengthening the Spanish Core and Enhancing Shareholder Stability

BySamantha Johnson

Mar 25, 2024
Government acquires 3% stake in Telefnica, becoming a new shareholder.

The State Industrial Participation Company (SEPI) has acquired a 3% stake in Telefónica, with the Government’s authorization to become a shareholder in the company. SEPI’s investment aims to provide Telefónica with greater shareholder stability and safeguard 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 emphasized its leading role in telecommunications and digital development as justification for the investment. SEPI highlighted Telefónica’s strategic importance and industrial capabilities in areas such as security and defense. In agreement, Telefónica pledged to continue creating value for shareholders and delivering excellent service to customers through its strategic plan.

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.

By Samantha Johnson

As a dedicated content writer at newsanguinely.com, I weave words into compelling stories that captivate and inform our readers. With a passion for storytelling and a keen eye for detail, I craft engaging articles that shed light on the latest news and trends. When I'm not typing away at my keyboard, you can find me exploring new ideas, researching diverse topics, and striving to deliver content that resonates with our audience. Join me on this journey as we uncover the stories that matter most.

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