The State is once again a shareholder of Telefónica 26 years later. At a time of maximum tension, after the announcement by the Saudi STC that it was acquiring 9.9% of the capital (5% directly and 4.9% through derivatives), the Government responded by giving the order to the Company State Industrial Participations (SEPI) to buy another 10%. A landing in the telecommunications company that the State has already launched. As reported this Monday to the National Securities Market Commission (CNMV), the SEPI already has 3% of the capital of the telecom company – it is only obliged to communicate its participation when it exceeds that barrier. This represents the payment of about 700 million euros.
The State announced at the end of last year its intention to acquire 10%, so this is part of the purchases to reach that level. These acquisitions have been going on for days, although it was not until this Monday that he announced it. A notification that has arrived just one hour after CaixaBank, one of the operator's reference shareholders, announced the reduction of its stake from 3.510% to 2.510% after the sale of financial coverage in recent weeks. “There is no relationship with CaixaBank, it is a coincidence,” SEPI sources maintain.
“The State Company has reached 3%, communicating the acquisition of significant stakes upon reaching the threshold provided for by the regulations on the matter,” the public firm explained in a note on Monday afternoon. In this way, the organization is in the process of complying with what was ordered by the Council of Ministers last December, which set the objective of reaching a maximum of 10% of the capital.
Telefónica, for its part, indicates that the purchase of a share package by SEPI is confirmation of the announcement made on December 19. “We have no more information about it. In any case, Telefónica's interest in Telefónica demonstrates that it is a leading, strategic and attractive company not only in the field of telecommunications, but also in the development of the entire new digital era, both in Spain and internationally. At Telefónica we will continue to focus on the execution of the 2023-2026 strategic plan to continue creating value for shareholders and provide the best service to customers,” company sources explain.
For the bank's part, in its statement this Monday it communicates its decision to “partially liquidate coverage on 1,957% of its 3,510% stake in Telefónica by delivering 1% of the stake.” That is, its participation is reduced to 2.510%. The financial entity, which has been a historical shareholder of Telefónica along with BBVA, already reduced its presence in the operator at the end of September 2022. “Then we did the same operation,” say sources from the entity. In that case, it went from 4.495% to 3.495%. Sources familiar with the operation add that the operation has been carried out by an investment bank and that different investors have bought it. That is, it has not ended up at the SEPI.
Last week, the CEO of CaixaBank, Gonzalo Gortázar, was convinced that the presence of the State in the capital of the operator will not change the management of the company. “The State will be absolutely respectful as it is as a shareholder of CaixaBank,” said the executive. The group estimates that the operation “will not have a material impact on the profit and loss account or the CET1 ratio.” [el capital de máxima calidad]″.
Of course, after cutting its presence in telecom, the bank loses weight compared to its main capital partners, although Criteria usually compensates for this with new purchases. In fact, the group as a whole usually maintains its weight in Telefónica through its investment arm, the holding company that manages the assets of the La Caixa Banking Foundation. “We have not changed our strategy regarding Telefónica and we are going to continue increasing our position,” say sources from the organization.
Other sources close to the bank add that Criteria has not stopped buying in recent weeks. “The same idea follows: they lower their participation and we raise it,” say sources close to the foundation. Throughout the month of March, Criteria Caixa has acquired a package of 5.5 million Telefónica shares through 18 acquisition operations, according to records sent to the CNMV. Specifically, it has invested 21.38 million euros in telecom securities at a price of between 3.81 euros and 4 euros per share. Its participation is around 2.56%, according to the Criteria website. Other Telefónica shareholders are the Saudi STC, with 9.9%; BBVA, with 4.839%; BlackRock, with 4.807%, and SEPI, 3%, according to figures from the markets supervisor. While SEPI, when it concludes its purchases, would be the first shareholder if it reaches 10%, and would then surpass Saudi Telecom Company (STC), controlled by the sovereign fund of Saudi Arabia.
No news from STC
A little more than six months after STC's announcement, it is still unknown what it will do about its entry into the capital. The Saudi firm announced the acquisition of 9.9% of the shares, 5% directly and 4.9% through derivatives. The acquisition was woven for months in secret and caught even the company's president, Jose María Álvarez Pallete, off guard, who was traveling. He also caught the Government on the back foot, which by virtue of the anti-takeover shield and due to Telefónica's contracts with the Army, has the ace up its sleeve of being able to veto the transaction.
Since then, the Saudi telecom company has adopted a low profile. At first they stated that they would request government authorization soon, and that they had advanced the documentation. Despite this, said file does not reach the Minister of Economy, Carlos Body, or the Minister of Defense, Margarita Robles, in charge of piloting the process. From those around the company they do not move from a brief: “Our plans continue as planned.”
Months of silence and unknowns, as Pallete explained in the last presentation of results. “There is no news from either STC or SEPI. “Minority shareholders give stability to Telefónica shares,” he said then. A month ago, the leaders of the Spanish and Saudi telecom companies met to discuss the acquisition and the possible entry of STC on the board of directors, but it is still unknown whether it will have the approval of the Government.
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