Telefónica rises close to 3% in the stock market after entering the capital of the Saudi State

by archynewsycom
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Telefónica shares have started with purchases of 2.5% at the opening of the session this Wednesday after the entry into the capital of the Saudi State, communicated yesterday late in the afternoon. The rise reaches more than 3% as the day progresses. Their titles are placed at 3.85 euros per share, in a session in Europe marked by losses.

Telefónica communicated this Wednesday to the National Securities Market Commission (CNMV) that it “takes note of the friendly approach” of STC to the group and “of its support for the management team, Telefónica’s strategy and its ability to create value” after about what The main Saudi operator announced yesterday the acquisition of a 9.9% stake in the Spanish company for a total amount of 2,100 million euros. This acquisition, about which no further details have been disclosed, was made at market prices, with no price premium, so the shares are simply taking the news as something positive, but are not seeking to adjust to any price.

It must be taken into account that the purchase by STC of 9.9% of the capital of Telefónica has occurred in two share packages pending what the Government says, which modified the law as a result of the pandemic to protect strategic companies within what is known as escudo antiopus. Nevertheless, The Saudis have clarified that they have no intention of going further or taking control of the operator. As STC communicated to the regulator yesterday, the operation has been carried out through the direct acquisition of 4.9% of Telefónica shares and has acquired another 5% of the capital through financial instruments. STC clarifies in its statement that it will obtain the voting rights corresponding to that 5% through the physical liquidation of these financial instruments after obtaining the necessary regulatory authorizations. The limit from which the authorization of the Economy is necessary for this type of operation is 5% of the capital.

It should be noted that The Saudis could have waited until September to land at Telefónica with a clear intention: avoid the previous limitation established by the Executive at 10% and that it was reduced to 5% as of last September 1. Since last week, the new text of the Royal Decree Law, which was modified by the Executive at the beginning of July, entered into force.

According to this text published in the BOE, The Government has three months to authorize or not the operation. The key question is to decide whether an executive in office can make this type of decision or should simply wait for the next government, in the hands of the PP or PSOE if there are no new elections, to decide.

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