STC announced yesterday the purchase of 9.9% of Telefónica for 2,100 million and its intention not to take control of the Spanish operator
MADRID, 6 Sep. (EUROPA PRESS) –
Telefónica has stated 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 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, with no intention of taking control of the operator.
The purchase by STC of this stake in the Spanish group has been carried out through the acquisition of shares representing 4.9% of Telefónica’s share capital and financial instruments that confer economic exposure on another 5% of Telefónica’s share capital .
STC Group will obtain the voting rights corresponding to that 5% through the physical liquidation of the aforementioned financial instruments after obtaining the necessary regulatory authorizations.
From the company they have clarified that they have no intention of acquiring control or a majority stake in Telefónica. “This is a great investment opportunity that allows us to use our solid balance sheet while maintaining our attractive dividend policy,” they pointed out.
In addition, as they have highlighted, this acquisition represents “another important milestone” in its expansion and growth strategy, and reflects confidence in Telefónica’s sustainable growth and upward potential.
As part of its growth strategy, STC has made a series of investments in the information, communication and technology sector, both in Saudi Arabia and abroad, the most recent being the acquisition by its subsidiary Tawal of the assets of United Group telecommunications towers in Bulgaria, Croatia and Slovenia.
STC Group Chairman Mohammed K.A. Al Faisal has commented that his company shares many similarities with Telefónica. “This important long-term investment by STC Group is aligned with our growth strategy, according to which we invest in sectors such as technology and digital infrastructure in markets that we consider promising around the world,” he said.
