The Spanish government increases its stake in Telefónica
The Spanish government has acquired a stake in Telefónica through the State Society of Industrial Participations (SEPI). According to the information provided by SEPI to the United States Securities and Exchange Commission (SEC), the government’s participation in the telecommunications operator is 9.038%, which represents a total of 512,467,150 shares. This acquisition comes close to the government’s mandate to acquire up to 10% of the company.
Spanish government investment in Telefónica
The Spanish government has invested approximately 2,059 million euros in Telefónica. The average price paid for each share was 4.0177 euros. Although the market value of the government’s participation is approximately 2,127.7 million euros, which represents an increase of about 62.7 million euros compared to the amount disbursed so far.
Share acquisition process
The process of purchasing shares by the Spanish government began on March 25, when SEPI acquired a 3.044% stake in Telefónica. In the following weeks, SEPI continued buying shares and increased its position to 5.034% on April 15, 6.169% on April 26, 7.079% on May 8, and finally to 8.53% just two days ago.
SEPI advisor at Telefónica
Due to its level of participation, SEPI has the right to have a director on the board of directors of Telefónica. On May 8, the SEPI accepted the resignation of Carmen García de Andrés as a director and appointed Carlos Ocaña Orbis as a director representing the SEPI. In addition, the possibility has been left open that the government can appoint a second director when it reaches a 10% stake in the company.