06/09/2023 – 15:17
Today, Wednesday (6), the Spanish government announced that it will ensure the preservation of the country’s “strategic independence” after the entry of the Saudi STC group into Telefónica, which has become the largest shareholder of the Spanish telecommunications giant, with a 9.9% stake.
“Telefónica is not just a symbolic company, but a strategic operator and the government will ensure that Spain’s strategic independence is preserved,” executive spokeswoman Isabel Rodriguez told TVE public television.
Economy Minister Nadia Calvino reminded reporters in Brussels that Madrid had “strengthened” in recent years the mechanisms to protect its “strategic sectors” and promised to implement “all necessary mechanisms” to defend its interests.
On Tuesday, STC Group (Saudi Telecom Company) announced the acquisition, realizing its 9.9% stake for €2.1 billion (about 11.3 billion riyals at current prices), a purchase that has become the largest shareholder of the Spanish company present throughout Latin America. America and the United Kingdom.
The Saudi company, 64% of which belongs to the Saudi Public Investment Fund, said in a statement that this acquisition will allow taking advantage of the “potential” provided by the important infrastructure “portfolio” of the Spanish operator. But she did guarantee that she had “no intention of taking control or a majority stake” in Telefónica.
Of the 10%, foreign investors who want to buy shares in a Spanish company considered a strategic need for government approval, due to a measure introduced in 2020 to protect companies weakened by the COVID-19 pandemic.
In the case of defense-related activities, as is the case with Telefónica, which provides telecommunications services to the Spanish army, the purchaser must also obtain the approval of the Ministry of Defense, especially if there is an intention to vote, in acquisitions of more than 5%.
“Maintaining our strategic autonomy is essential,” Labor Minister Yolanda Diaz said on X (formerly Twitter), which has called for “better regulation and protection to avoid” perceived hostile purchases by fragile companies.
Despite making a net profit of two billion euros (about R$11 billion) last year, Telefónica has been carrying heavy debts for several years and has barely been able to reduce them.
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