The State Company for Industrial Participations (SEPI), with public capital, is exploring buying a stake in Telefónica, as reported to the CNMV this Tuesday, following rumors published in the press in recent days.
The maneuver comes after the entry in September of the Saudi STC with close to 10% of the shares for around 2.1 billion euros, 4.9% in shares and 5% in derivatives, which has generated a stir within of the acting Government.
At the moment, the Saudi fund only has 4.9% of Telefónica's capital in its direct possession. To execute the other 5% it would require the operation of the Spanish Executive given that Telefónica is considered a strategic company due to its investments in Indra and the Defense sector and any shareholding movement that exceeds 5% must be approved by the Government.
For that to happen, the Saudi fund must initially request that approval from the Ministry of Defense and subsequently be ratified by the Council of Ministers. But that hasn't happened yet. "In principle there is no rush. The objective communicated by STC is to invest financially in Telefónica with a view to subsequent participation in decision-making that is still known when it will materialize," explain sources close to the Arab investors.
If this 9.9% materializes, STC would have the option of a prominent presence on the Telefónica board with access to confidential information not only about the company but also about the strategic plans of the defense of Spain. A situation that bothers the Government, and which, as has become known today, has even led to the consideration of a renationalization of part of the company through a public industrial consortium. "SEPI has been monitoring Telefónica's situation, and is carrying out an internal exploratory analysis regarding a possible acquisition of a shareholding." In any case, this analysis does not presuppose a purchase, please note. The note also does not specify what percentage would be acquired. The possible purchase had been announced by El Confidencial this Monday, who spoke of a coordinated operation with other large companies and Spanish businessmen to acquire 5% for around 1,000 million euros.
Indra, in which SEPI owns 27.99%, refused this Tuesday to make assessments on what was published in recent days of an entry by the state company with other firms in hand. In a conference with analysts on the occasion of the presentation of the results, its president Marc Murtra stated that his company takes its investments "very seriously" and does not comment on "speculations."
They also do not comment from Telefónica, after being consulted this Tuesday from La Vanguardia.
The SEPI is in charge of managing companies and promoting State participation. It has 14 majority stakes in firms such as Correos, Navantia or Tragsa. Added to these are a dozen minority stakes in Redeia (20%), Hispasat (7.41%), Enagás (5%), Airbus (4.12%) or IAG (2.52%), among others, according to It appears on their website.
The possible purchase has been generating debate for weeks. Telefónica "is a strategic company for Spain due to its role in the field of telecommunications, but also in the field of defense," stressed this Monday the spokesperson for the acting Government, Isabel Rodríguez, in the press conference after the Council of Ministers. Rodríguez asked for "prudence" although she acknowledged that the Executive is "defending the strategic interest" of Spain in Telefónica.
For its part, STC highlighted in a statement this Monday that "Telefónica is one of the largest telecommunications companies in the world with a presence in important markets such as Spain, Germany, Great Britain and Brazil. This investment aims to strengthen cooperation between the two companies to benefit from all the opportunities available in the future. The company also stressed its confidence in Telefónica's "sustainable growth" and "upward potential."
