STC already has 9.97% of Telefónica shares and asks to join its board

The Saudi STC has already effective its control of 9.97% of Telefónica sharesconverting the 5% that it controlled of the Spanish operator into direct shares through various financial derivatives. This has been reported by the company to the SEC, the United States Securities and Exchange Commission, according to Europa Press.

This was the step I needed to be able to formally request a position on the Telefónica Board of Directors, something that had been expected for months. The request, yes, is going to arrive at a time when the board is in the midst of a reorganization phase, after the President of Telefónica until a few days ago, Jose María Álvarez-Pallete, has been replaced, practically by surprise. , by Marc Murtra.

STC also increased its stake in Telefónica by surprise when in September 2023 it announced the launch of an operation to control practically 10% of the operator’s shares, for which it ended up paying around 2.1 billion euros. Of course, due to current regulations, it had to obtain government approval before being able to obtain more than 5% of the securities. This is because Telefónica is a company considered strategic for Spain, due to the links it has with Defense.

Finally, the government authorized STC, majority controlled by the Saudi Arabian Sovereign Fund, to increase its stake in Telefónica at the end of November 2024. From then on, the Saudi company had six months to take the step that it has confirmed. now: convert the 5% of shares that he controlled through various financial instruments into direct securities.

Before announcing its intention to become the majority shareholder of Telefónica, STC had 4.9% of the company’s shares, which it bought in 2003. But finally, due to the commotion caused by this movement, it will not be the entity that controls the majority of the operator’s titles, but the third in importance. Currently, The government controls, through SEPI, 10% of its securities. In addition, CriteriaCaixa has 9.994%.