The Government defends the strategic position of Telefónica and the "standardization" of relations with STC

MADRID 23 Nov. () –

The Minister for Digital Transformation and the Public Service, Óscar López, defended this Saturday in Madrid the strategic position of Telefónica for the Spanish economy and highlighted the “normalization” of relations with the Saudi telecommunications company STC after its emergence in the shareholding of the company directed by José María Álvarez-Pallete with the purchase of a 9.9% stake that is still pending approval from the Government.

In September 2023, STC materialized the purchase operation through the acquisition of 4.9% of the capital and the acquisition of another 5% through derivative instruments, still parked today awaiting approval from the Executive.

In reference to these negotiations opened by the Government with STC that would allow the Arab firm to reach 9.9% of Telefónica’s capital and, subsequently, request a position on the board of directors, the minister has indicated that the talks “are progressing and “they are moving forward in a positive direction” without wanting to give more details about the process, although warning that “it will have its results.”

“Telefónica is much more protected than a year ago when this operation began,” López stated as a result of the State’s entry into the technology company after having reached 10% of the share capital through the State Society of Industrial Participations (SEPI). ) in an operation after the arrival of STC with a “vocation for permanence” and in order to provide “greater shareholder stability” to the company.

The representative of the Executive has insisted, in statements to the media in Madrid, that his priority is to “always defend the general interest and, of course, the strategic importance for this country of a company like Telefónica.”