The Diplomat
Saudi telecommunications company STC Group has bought a 9.9% stake in Telefónica for 2.100 million euros, making it the largest shareholder in the Spanish operator, the Arab company said in a statement yesterday.
Telefónica also informed the Spanish Securities and Exchange Commission (CNMV) of the transaction, which will be carried out through the acquisition by Saudi Telecom of shares representing 4.9 % of Telefónica’s share capital and financial instruments for another 5 %.
The Saudi company clarifies that it has no intention of acquiring control or a majority stake in Telefónica, according to its CEO, Olayan Alwetaid, who stressed that “this is a great investment opportunity that allows us to use our solid balance sheet while maintaining our attractive dividend policy”.
Until now, BBVA was Telefónica’s largest shareholder, with 4.87%, followed by the US fund BlackRock, with 4.48%, according to the operator’s sources. Caixabank also has a 3.5 % stake in the Spanish multinational.
Saudi Telecom is the digital leader in the Middle East and offers innovative products and services in Saudi Arabia, the Middle East and North Africa, according to the information provided by the company, which is listed on the Saudi Stock Exchange with a market capitalisation of 49.200 million euros.
