Criteria sells derivatives and now reaches 10% of Telefónica shares.

Caixa criteria Today he is expected to enter into the necessary derivatives to increase his 5% stake in Telefónica and obtain a 10% stake, which would be equivalent to what the government has amassed through its holding company Sepi anda state-owned business participation company that is dependent on the Ministry of Finance, as announced Confidential and confirmed the EXPANSION of financial sources. Sources Caixa criteria They refused to comment on this information.

Rate increase Caixa criteria, which represents an investment of just under $1,200 million, comes in the midst of a shareholder turnaround for the operator, which since September 2023 has seen the most significant changes to its shareholding since the PP government’s privatization in 1997.

Attack on STC

The shareholder turmoil began on September 5, 2023, when Saudi Arabian telephone company STC, majority-owned by PIF, the Arab country’s sovereign wealth fund, suddenly announced that it directly controlled 4.9% of Telefonica shares and that it also held another 5% in derivatives. Telefonica has always maintained that the Saudi operator’s decision had not previously been communicated to the operator, its main shareholders or the Spanish government.

Since then, some official action has been expected from the Arab operator, since although it does not require government permission to retain 4.9%, it must overcome this participation or demand membership in the board, as it seems in the Arab Group’s Intention Case.

The STC’s decision, in turn, provoked a reaction from the government of Pedro Sánchez, which announced last December that it would take part in the telecommunications company through a state holding company. Sepipurchase up to 10%.

Sepi He acquired stakes in the operator and on May 21 reported that he had already reached the planned 10% with a total investment of 2.284 million euros and an average price per share of 4.0295 euros.

Observers note that the rate Caixa criteria and its rise to 10% is a clear sign of support from the management of the telecommunications group, led by its president José María Álvarez-Pallete, with the intention of marking the territory and making its presence known in the operator from an industrial and non-financial perspective and even preventing potential political interference by the socialist government in the management of Telefónica. CriteriaCaixa has also recently announced another very important fact, namely that the last general meeting of Telefónica shareholders voted to extend the term of office of the president of CriteriaCaixa. Isidro Fein, as its own director criteria, instead of on behalf of KaishaBank, as he had been doing until now.

Criteria and dividends

In recent years, Criteria increases its stake in Telefónica, and CaixaBank reduces it. In fact, at the end of May, CaixaBank announced a reduction in its stake from 3.5% to 2.5%, and on June 10 announced the final sale of this 2.5% and therefore the withdrawal from the capital of the operating company.

In its turn, Caixa criteria noted – then, on April 8, when he announced the increase of his shareholding to 5% – that this package “adapts to the investment policy Caixa criteria, characterized by efficient and prudent management of its portfolio, focusing on companies with an attractive dividend policy, such as Telefónica, which allows it to finance the social activities of the La Caixa Foundation.”

Strategic and long-term nature

For Caixa criteria, its investment in Telefónica is “strategic and long-term”, according to the Catalan holding company, which believes that the “main objective” of its increased investment in the telecommunications company “is to provide the telecommunications operator, which is an important company both for the country and for the sector at an international level, with the greatest possible shareholder stability”. Increased participation Criteria in Telefonica It also relates to the telecom company’s ability to generate cash and dividends, as envisaged in its GPS strategic plan, presented in November 2023. telephone has secured a minimum dividend of 0.30 euros per share in cash over the four-year period from 2023 to 2026. This means that with 10% of the shares in the telecom company, Criteria It will receive at least 510 million in the three-year period 2024-2026. How La Caixa Foundation will allocate about 600 million to its social work in 2024, the impact of dividends telephone This would mean that the Criteria would receive the equivalent of 28% of social work for that year.