SEPI exceeds 6% of Telefónica and is on the verge of claiming a seat on the board of directors.

“We inform you that in the course of the transaction for the acquisition of shares in Telefónica, which SEPI is carrying out in pursuance of the agreement of the Council of Ministers of December 19, 2023, this person has exceeded the threshold of April 24, 2024. 6% of the authorized capital of the specified company,” the company said in a statement sent to the National Securities Market Commission (CNMV).

SEPI clarifies that “the above information was provided Securities and Exchange Commission (SEC) United States of America in accordance with the regulations in force in the specified country. This information is transmitted through this document voluntarily in order to avoid asymmetries in the information that will be disseminated regarding Telefónica in accordance with the rules applicable in other jurisdictions, as well as the rules resulting from the Spanish rules.

In fact, this movement puts a public company almost on the brink of being able to qualify for a seat on the board of directors. Among the plans of the city. Government is vying for at least a seat in the highest governing body of communications, although it is unknown when this will happen.

Market sources suggest that the theoretical percentage granting access to a board position is 6.7%, as calculated by the body and balance sheet of shareholders. However, there are shareholders, such as BBVA, who sit on the board of directors with less than a 5% stake; However, in this case it is respect for the bank as a historical shareholder.

La Caixa and SEPI

SEPI continues to buy shares non-stop and with this latest move, it becomes the telecom company’s first individual shareholder. However, the La Caixa group remains superior if one adds participation through Criteria (5%) and Caixabank (2.5%), which, although differentiated entities, in practice act as a single company.

The executive’s intention remains to reach 10% in Telefónica in order to counteract the entry into the market STC Saudiswho already own 5% of shares and another 5% of derivatives, for which they first need government approval.

Thus, both the Saudis and SEPI intend to be represented on the board of directors, but there are doubts about the formula that could be used for this when the time comes for them to ask for it. On the one hand, there is the possibility of convening an extraordinary meeting with a proposal to join him, and the number of board members will have to be expanded again; On the other hand, a vacancy occurred on the board of directors due to the resignation of one of its current members and representatives of new shareholders were admitted. All this remains to be seen, since neither the state nor the Saudis have yet requested a seat on the company’s top management body.