The government is willing to pay for entry into Telefónica the amount it allocates to its star measure in the housing sector: 2,500 million.
The public money the government is committing to its Telefonica entry plan represents an effort of such magnitude that it is equivalent to the latest stellar measure announced by the President. Pedro Sanchez in housing issues.
State Steam SocietyTicipaciones Industriales (Sepi) told the US Securities and Exchange Commission (SEC) that it is ready to buy 10% of the capital, despite the fact that the first 5% has already cost it 1.134 million and the rest could exceed 1,200 million at the moment. prices after increasing on Tuesday. The sum of both figures exceeds 2,300 million and is close to the 2,500 cited by housing ministers. Isabel Rodriguezand Economics, Carlos Bodie On Tuesday they also formally signed an agreement to provide guarantees to young people seeking housing.
We are talking about allocating public money to provide guarantees, first of all, to those under 35 years of age with an income of less than 37,800 euros and who can therefore take out a mortgage to buy their first home. This was what Sanchez himself expected at his election rally in February.
In parallel, Sepi, the government’s investment arm, has reported to the Securities and Exchange Commission (SEC) that it has already paid the aforementioned $1.134 million for half of the Telefónica stake it is pursuing and has the rest. “Sepi intends to acquire additional shares from time to time which, together with the shares declared, may together constitute a maximum of 10% of the total number of Telefónica shares outstanding.
That’s another 290 million shares in a rising market. This Tuesday it closed at 4.14 euros, which means that the operator at highs from September 2022 and a market value of 23.7 billion euros.
Sepi uses the usual caution in statements of this type in the US: “There can be no assurance that such additional share acquisitions will be completed.“, but the first vice president, Maria Jesus MonteroThe company on which Sepi depends has publicly stated that the decision has been made to “get to 10%.”
In a statement, Sepi confirms its intention to appoint a board member, but without forcing the president. Jose Maria Alvarez-Pallete, to increase the number of directors, which would result in the operator violating the CNMV code of good governance. Sepi said his plan does not include “changing the number or terms of directors or filling existing vacancies on the board.” He also implies that he will not demand a special meeting for this purpose, so he seeks to have his future representative appointed by co-optation.. That is, the right of the board of directors to appoint a director, taking advantage of any vacancy that arises, without first submitting a decision to the meeting of shareholders.
At the moment, Telefonica is bordering on this right to claim this director, since it already owns 5%, which it acquired at a price of 3,918 euros per share, as stated by the SEC. This is 4.5% more than the price the Saudis paid in September last year. STC Group, controlled by Saudi Arabia’s sovereign wealth fund, said it had directly and indirectly closed the purchase of 9.9% of the capital at an average price of 3.75 euros.
As this newspaper has already reported, investment banks expected that Sepi, subordinate to the Ministry of Finance, I will end up paying a higher price than STC. announcing its intention to buy up to 10% of Telefonica to counter a Saudi exit without first tying up the transaction.
OVER COSER AND HIS PEERS
This has raised expectations that prices will re-evaluate in the short term as a new insatiable buyer emerges, which is from investment banks, according to the above analysis. Since the beginning of the year, Telefonica’s share has grown by 14%, five points more than Ibex as a whole. and significantly above other comparable European operators such as Orange, which rose 5.24%, and Vodafone, which rose 0.21%.
In the absence of early results from the new strategic plan, the market is feeling a connection between Telefonica’s growth and government procurement. The boom could end when the Sepi index reaches 10%, as evidenced by the high exposure to bears, who account for 1.8% of the operator’s shares and are expected to fall soon.