Government’s SEPI Stake in Telefónica: Strengthening Strategic Capabilities and Fostering Financial Stability

By Eleanor Harrison Mar25,2024
Government acquires 3% stake in Telefnica, becoming a new shareholder.

The State Industrial Participation Company (SEPI) has recently acquired a 3% stake in Telefónica, following the Government’s approval of its investment as a shareholder in the company. With this acquisition, SEPI aims to provide Telefónica with greater stability and safeguard its strategic capabilities.

The stake is worth approximately 700 million euros, based on market prices that have risen to 3.99 euros in recent weeks. With SEPI’s entry and CaixaBank’s reduction of 1% of its shares in the market, the State becomes the fourth largest shareholder in Telefónica.

Telefónica has welcomed SEPI’s investment and highlighted its leading role in telecommunications and digital development. The company pledged to continue creating value for shareholders and delivering excellent service to customers through its strategic plan.

The Council of Ministers authorized SEPI to purchase up to 10% of Telefónica in December, although there were initial doubts due to financial constraints. However, the operation gained momentum as Telefónica’s shares surged, and CaixaBank also reduced its stake in the company, aligning with its strategy to rotate its position.

The reduction in CaixaBank’s participation diminishes the “Spanish core” in Telefónica, composed of BBVA and CaixaBank’s shares. The Government aims to strengthen this core by acquiring 10% of Telefónica through SEPI as part of a broader strategy involving financial restructuring and stake adjustments within the company.

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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