The Government meets with STC on the verge of authorizing the takeover of 9.9% of Telefónica | Companies | EUROtoday

The administration of the Saudi operator Telecom Company (STC), headed by its CEO, Olayan Alwetaid, has held conferences this week with the Minister of Economy, Carlos Cuerpo, and the Minister of Digital Transformation, Óscar López. The conferences happen within the context of the Saudi firm receiving authorization from the Spanish Government to take 9.9% of Telefónica's capital, after requesting the corresponding permission to extend its stake from the 4.9% it at present controls.

The first assembly befell final Tuesday, the seventeenth, with Minister Óscar López, on the headquarters of the Ministry of Digital Transformation and, “in the meeting, the future of the telecommunications sector was discussed,” the division famous on its X account. Two days later, the Saudi delegation held a gathering with Carlos Cuerpo, who spoke with Alwetaid about “the attractiveness of Spain as a hub of investment in the digital sector and the importance of a transparent, permanent and close dialogue,” the minister stated in his X account.

The two ministries have chosen the X community to report on the conferences, additionally posting images of them, though they didn’t present a press launch. The visibility of those conferences means that the necessary authorization from the Executive for STC to extend its participation within the Spanish operator to 9.9% is imminent. The Government has proven itself receptive to the operation, as EL PAÍS reported. This inexperienced gentle requires a previous report from the Ministry of Defense, as Telefónica is a strategic firm for state safety.

The largest Arab telecommunications operator, managed by the Saudi state by means of the sovereign wealth fund Public Investment Fund (PIF), which owns 64% of the corporate, introduced its funding in Telefónica's capital in September 2023 with the acquisition of 4.9% of the capital, and the acquisition of one other 5% parked in by-product devices awaiting govt approval.

The STC delegation additionally has scheduled conferences with Telefónica's prime administration, though the Spanish firm has declined to make any feedback. Telefónica's chairman, José María Álvarez-Pallete, stated final week that they’d not acquired any formal requests from the Saudi group.

Changes within the board

The change in Telefónica's capital construction will even be mirrored within the board of administrators. If the Government authorises the acquisition of 9.9% of the capital by STC, the Arab group will have the ability to request a seat on the board, such because the one already held by the Sociedad Estatal de Participaciones Industriales (SEPI) with the appointment of Carlos Ocaña. The state-owned firm accomplished the acquisition of 10% of the capital final May for two.384 billion euros, turning into the biggest shareholder of the Spanish multinational, adopted by StandardsCaixa (9.9%), STC (4.9%), BBVA (4.83%) and BlackRock (4.23%).

StandardsCaixa, the economic group of the La Caixa Foundation, additionally elevated its stake within the operator from 4.91% to 9.9% final July for 1.1 billion euros, and should apply for one more place on the governing physique along with the one it at present holds.