• Mon. May 20th, 2024

Government Moves to Stabilize Telefónica with 3% Share Acquisition through SEPI

BySamantha Jones

Mar 25, 2024
Government acquires 3% of Telefónica’s capital as it enters as shareholder

The Spanish government’s State Industrial Participation Company (SEPI) has acquired a 3% stake in Telefónica, with approval from the government to enter the company’s capital. SEPI, a committed shareholder, aims to provide stability and aid Telefónica in achieving its goals and protecting strategic capabilities. The stake comprises 175 million shares valued at approximately 700 million euros based on market prices.

As the fourth-largest shareholder in Telefónica, after BBVA, BlackRock, and STC Group, SEPI’s investment highlights the company’s strategic importance. CaixaBank has reduced its stake in Telefónica by selling some of its shares to decrease exposure to the company while the La Caixa Banking Foundation has been increasing its position through Criteria. Isidro Fain, vice president of the group’s Board of Directors, is expected to maintain his long-standing relationship with the company.

The reduction in CaixaBank’s ownership weakens the “Spanish core” in Telefónica, which includes BBVA and Catalan bank. The Government plans to strengthen this group by acquiring 10% of the company through SEPI despite budget constraints. Despite uncertainty surrounding the operation due to budget constraints, growing investor interest in Telefónica is evident from its increasing share price.

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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