Government acquires 3% of Telefónica’s capital as it enters as shareholder

Government’s Investment in Telefónica Bolsters Strategic Capabilities, Weakens ‘Spanish Core’

The State Industrial Participation Company (SEPI) has acquired a 3% stake in Telefónica, following the Government’s approval to enter the company’s capital. SEPI, a shareholder committed to remaining invested, aims to provide Telefónica with greater shareholder stability to help achieve its objectives and protect strategic capabilities. This stake consists of 175 million shares valued at approximately 700 million euros based on market prices.

Telefónica views SEPI’s interest as a testament to its leadership and attractiveness in both telecommunications and the new digital era. The investment is justified by Telefónica’s industrial capabilities, particularly in areas like security and defense. The company sees this partnership as an opportunity for growth and expansion into new markets.

CaixaBank has reduced its stake in Telefónica to 2.5% by selling a portion of its shares. This move is part of a strategy to decrease the bank’s exposure to the company while the La Caixa Banking Foundation, through Criteria, has been increasing its position. Isidro Fain, vice president of the group’s Board of Directors, is expected to extend his long-standing relationship with the company.

Additionally, the reduction in CaixaBank’s ownership weakens the so-called “Spanish core” in Telefónica, which includes BBVA and the Catalan bank. The Government plans to strengthen this group by acquiring 10% of the company through SEPI. Despite uncertainty surrounding the operation due to budget constraints, the increasing share price of Telefónica suggests growing investor interest in the company.

Leave a Reply

Amarillo Company Assisting Dogs in Finding Their Forever Families Previous post A Furry Friend Finder: Le Chateau Pet Resort Partners with SPCA to Help Shelter Dogs Find Forever Homes.
Limited Space Available for Eclipse Viewing at the Science Mill Next post Total Eclipse Viewing Party at Science Mill: High Demand and Limited Admission