The Government reinforces the role of the State in companies considered strategic. The instrument chosen as the armed wing of this revival of industrial policy is the State Society of Industrial Participations, the SEPI, an organization dependent on the Ministry of Finance that, now more than ever, seeks to rebuild the public business conglomerate and thus be able to partially compensate for the emergence of powerful foreign investors. The government's maxim is to preserve “strategic autonomy” in essential sectors. “This is not an interventionist policy” in the market, explains a source from the holding company, but rather about maintaining a strategic line so as not to lose control of national industrial policy.
The Telefónica operation folder emerges, at this time, as one of the priorities for SEPI. The acting first vice president, Nadia Calviño, defined Telefónica this week as the “most strategic company in the country.” A declaration of intent to defend the Spanishness of the company. The focus is on the board of directors and on that objective of “defending its strategic interest,” stated the also Minister of Economy. The movement is more defensive than offensive and has been spurred by the unexpected emergence of Saudi Telecom Company (STC) in the capital of the Spanish multinational. Acquiring 5% of Telefónica to have access to the board of directors would cost the State just over 1,000 million, taking into account the company's current price. The problem is where to get that money from, taking into account that public accounts are already tight. Calviño asked for “prudence” as she is a listed company.
SEPI is already part of prominent strategic companies. The jewel in the crown is, without a doubt, Indra, where the company is the main shareholder with 27.99%. It has been expanding its participation for a year after solving a deep corporate governance crisis with the departure of Ignacio Mataix and the appointment of José Vicente de los Mozos as CEO. He invested 175 million with discreet movements. In addition, the holding company is present in fourteen companies with majority control, such as Correos, Navantia or Tragsa, among others; and in nine others on a minority basis, such as Enagás, Hispasat, Redeia, Sedigas, Airbus or IAG, among others.
SEPI also has a line of indirect participation in more than 100 companies. In this section, the Government decided to include in the addendum to the Recovery Plan the possibility for the holding company to support other strategic companies. It would do so, first of all, through the Next-tech fund, endowed with 4,000 million in loans and designed to invest in startups. The Government thus defends the philosophy of this item: "Develop the venture capital sector in Spain, encouraging Spanish funds to participate in more larger operations." That is, defend Spanish digital companies from foreign funds interested in these operations. The second fund is the co-investment fund, endowed with 2,000 million, to encourage the commitment of sovereign funds to Spain. SEPI could also be part of that support. The third fund, that of companies affected by Covid, endowed with 1,020 million, seeks for the holding company to collaborate in the solvency of Spanish companies affected by the pandemic.
The SEPI has been taken over since the 2018 motion of censure by senior officials close to María Jesús Montero. Its first president was Vicente Fernández, a former high-ranking official of the Andalusian Government who had to resign due to his involvement in the Aznalcóllar case. His position was vacant for several months until the minister elected another high-ranking Andalusian official, Belén Gualda. On several boards of directors there are former ministers and socialist representatives.
The monitoring work of SEPI companies is constant. On a day-to-day basis, the leadership of the holding company holds regular, monthly meetings with directors of the companies owned by the State. In these meetings, the strategic line to follow is agreed upon and decisions are agreed upon.
In short, the Government shows concern about the international context and uses the SEPI as a weapon of business protection. Furthermore, Spain does not have a public business network similar to that of Italy (Banca Monte dei Paschi, Enel or Eni) and France (France Telecom, EDF or Thales). In Indra the participation is majority, but in Telefónica it does not aspire to reach a similar share. The objective, ultimately, is that strategic companies do not pass into foreign hands and that their strategic decisions are made from a Spanish perspective.
