Government acquires 3% of Telefónica’s capital as it enters as shareholder

The State Industrial Participation Company (SEPI) has acquired a 3% stake in Telefónica, after the Government approved its entry into the company’s capital. SEPI, a committed shareholder, aims to provide Telefónica with greater stability and help it achieve its objectives while protecting strategic capabilities. This stake consists of 175 million shares valued at approximately 700 million euros based on market prices.

The investment by SEPI as the fourth largest shareholder in Telefónica highlights the company’s strategic importance. The move is justified by Telefónica’s industrial capabilities, particularly in areas like security and defense. Telefónica views SEPI’s interest as a testament to its leadership and attractiveness in both telecommunications and the new digital era.

CaixaBank has reduced its stake in Telefónica to 2.5% by selling a portion of its shares. This move is part of a strategy to decrease the bank’s exposure to the company while La Caixa Banking Foundation, through Criteria, has been increasing its position. Isidro Fain, vice president of the group’s Board of Directors, is expected to extend his long-standing relationship with the company.

Additionally, the reduction in CaixaBank’s ownership weakens what is known as “the Spanish core” in Telefónica, which includes BBVA and Catalan banks. The Government plans to strengthen this group by acquiring 10% of the company through SEPI, despite budget constraints and uncertainty surrounding the operation. However, growing investor interest in Telefónica is reflected in an increasing share price that suggests confidence in the future success of this Spanish telecommunications giant.

By Riley Johnson

As a content writer at newsmol.com, I dive into the depths of information to craft compelling stories that captivate and inform readers. With a keen eye for detail and a passion for storytelling, I strive to create engaging content that resonates with our audience. Whether it's breaking news, in-depth features, or thought-provoking opinion pieces, I am dedicated to delivering high-quality, informative content that keeps readers coming back for more. My goal is to bring a fresh perspective to every article I write and to make a meaningful impact through the power of words.

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