The Saudi company STC has assured through a statement that the new acquisition of Telefónica shares, where it will control 9.97%, gives you the right to appoint a representative on the company’s Board of Directors. He has assured this after the approval by the Council of Ministers to increase – with conditions – his voting rights in the capital of the telecom company he leads. José María Álvarez Pallete.
The Saudi has limited itself to stating that it has the right, without specifying whether he is going to ask for it or not. The Minister of Economy, Carlos Body, who announced this government authorization this Thursday at the press conference after the Council of Ministers, was asked about the possibility of STC having an advisor in the governing body of Telefónica.
His response was that this decision “corresponds to the company itself”, while at the same time expressed “prudence” and “caution” on the part of the Executive. The Telefónica Board of Directors has 15 directors, so if a representative from STC joins, one of its members would have to resign or this body would have to be expanded to 16 people. Either of the two possibilities would have to be ratified by a subsequent shareholders meeting.
A “long-term” strategic partner
The CEO of STC, Olayan Al-Wetaid, has highlighted in the note the role of the Saudi group as a “strategic” partner for Telefónica “in the long term.” He pointed out that, as one of the majority shareholders of the company, he maintains confidence in the leadership and strategic vision of Telefónica, while expressing his expectations for “work together to create value for all shareholders”
For STC, approval of your new stock purchases represents a significant advance for the company and reinforces its commitment to investing in high-value assets as part of its strategic growth and expansion plan.
For the Saudi company, the approval of the operation represents the recognition of the Spanish Government to the strategic role of STC as a shareholder, as well as an assessment of his contribution to the long-term development and growth of Telefónica.
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