Pallete meets with STC in Madrid to discuss landing at Telefonica before the next shareholders meeting

This is an important strategic step for the telecommunications industry. Jose Maria Alvarez-PalleteThe president telephoneheld a decisive meeting in Madrid With Olayan AlvetaidCEO STC, Saudi operator. The meeting took place within Mobile World Congress (MWC) V Barcelonanotable not only for its context, but also for the content of the negotiations, which include the management of STC’s possible 5% stake in Telefónica through derivatives and other corporate matters.

Of particular interest in these conversations is official communication that STC must fulfill Government of Spainnecessary step to formalize the above 5% participation in telephone. Speculation about possible interest STC a seat on the Spanish firm’s board of directors, as well as the nature of its investments, were also high on the agenda. In addition, it was discussed how this measure meets the interest of State Society for Industrial Participation (SEPI) V enter the capital of Telefonika as an analogue to Saudi investments, as confirmed Information nearby sources.

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The depth and scope of these discussions have not been fully clarified because Telefonica sources They refrained from making specific comments about the meeting. However, it is obvious that the possible entry STC V telephone Not only would this represent an important change in the Spanish company’s shareholding, but it could also impact its future strategy and operations. This will no doubt have implications for both the telecommunications market in Spain and also internationally, given the growing importance of cross-border investment in this sector.

STC Since September last year, he has owned a direct stake of 4.9% in telephonebut within a year he plans to obtain permission from Government cash out the additional 5% it now has in derivatives, as the company explains in its annual results report, in which it also states that it has already received its first dividend for its participation in the Spanish operator, specifically 167 million Saudi riyals ( about 41.2 million euros).

Regulations in force in Spain Regarding foreign investment in strategic listed companies, it stipulates that non-EU investors who intend to acquire more than 10% of a company of this type must seek permission from the executive branch. Nevertheless, This threshold is reduced to 5% for companies with national defense interests. as is the case with Telefonica. In this context, the Saudi company plans to obtain the necessary regulatory approvals for the remaining 5% to become effective within a year.

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Despite this, it is unknown STC He has already formally communicated to the government his intentions regarding Telefonica, such as whether he will seek a seat on the company’s board or not. At the time of joining UTK, they stated that they came to the company with the goal of becoming an industrial and stable partner. In response to STC’s entry into telephonethe executive branch ordered in the middle of last December State Society for Industrial Participation (SEPI) -depends on the Ministry of Finance – purchase up to 10% of the operator’s authorized capital.

In this sense, SEPI is finalizing the stock brokerage contract to begin the government’s entry into Telefonica in a process that vets both domestic and foreign financial institutions. This contract is “about to be concluded”, according to market sources telling Europa Press, who also noted that while foreign banks are on the shortlist, it will be Spanish financial institutions such as BBVA And Kaishabank those who will be best prepared to carry out the final execution of the exchange transaction.

In this sense, it is worth remembering that both BBVA How Kaishabank They are part of the so-called “stable core” in the shareholding telephone. On the other hand, SEPI has already entered into a consulting contract for the government operation in Telefonica, although the name of the financial institution that will carry it out has not been disclosed. In the same week, the Minister of Digital Transformation and Public Services, José Luis Escrivá, announced the creation Spanish Society for Technological Transformation (SETT)a new public company, colloquially referred to as “SEPI Digital” and through which the government is expected to manage participation SEPI in Telefonika. This new government organization will mobilize about 20 billion euros from Perth Chipfrom funds NexTech and from Audiovisual hub.