Escrivá points out that these types of operations have their “rhythm”
The Minister of Economy, Commerce and Business, Carlos Body, stated this Friday that the Government is studying the details on how to carry out the specific financing of the purchase of up to 10% of Telefónica by the State Society of Industrial Participations (SEPI). ), in parallel to the negotiations on the Budgets for 2024.
“It is an operation that was decided a few weeks ago and we are studying the details,” said Body in statements to Bloomberg TV reported by Europa Press.
The minister added that this analysis is being carried out in parallel with the negotiation of the Budgets for this year.
In this sense, he stressed that the Spanish Government has “a lot of confidence” in carrying out the Budget Law and has stressed that “all the efforts” it has been making since the second legislature began are aimed at approving the Budget law for 2024.
This, he highlighted, will be essential to meet the Spanish Government’s objectives of ending 2024 with a budget deficit of 3%.
On December 19, the Council of Ministers ordered the SEPI, an organization dependent on the Ministry of Finance, to purchase up to 10% of Telefónica’s share capital with the aim of providing the Spanish operator with greater shareholder stability and contributing to the safeguarding of its strategic capabilities.
“SEPI will proceed to carry out the procedures and actions that allow the process to be launched to, minimizing the impact on the price, complete the acquisition of the necessary volume of shares,” the Government said then.
“The presence of a public shareholder in Telefónica will reinforce its shareholder stability and, consequently, to preserve strategic capabilities of essential importance for national interests,” the Ministry of Finance stated a few weeks ago.
The Government argued in December that the entry into the capital of the telecommunications company was in line with that of other European countries, since Germany participates in the capital of Deutsche Telekom; France, has in Orange; and Italy adopted an agreement last summer to increase its participation in the company that brings together Telecom Italia’s fixed telephony assets to 20%.
The Spanish Government’s decision to enter Telefónica came a few months after the Saudi ‘teleco’ STC – 64% controlled by the Government of Saudi Arabia through the sovereign fund PIF (Public Investment Fund) – burst into surprise form in Telefónica’s shareholding with 9.9% of the company’s share capital.
This operation, which was forged without Telefónica’s management being aware, consisted of the acquisition of 4.9% of shares directly and 5% through financial derivatives.
The regulations in force in Spain regarding foreign investments in strategic listed companies state that the Executive must give permission to non-EU investors who intend to acquire more than 10% of a company of this type.
However, this threshold is lowered to 5% in the case of companies with interests in the field of national defense, such as Telefónica.
When the purchase of 10% of Telefónica by SEPI is completed, the state-owned company will become the operator’s main shareholder, ahead of STC and the stable core of Telefónica shareholders, formed by BlackRock, BBVA and CaixaBank.
When SEPI acquires 10% of Telefónica, it will have the possibility of acquiring a seat on the company’s board of directors.
“MAXIMUM DISCRETION”
Meanwhile, the Minister for Digital Transformation and Public Service, José Luis Escrivá, pointed out this Friday at an informative breakfast organized by Nueva Economía Forum that this type of operations has its “rhythm.”
“I have worked in a bank for ten years, in ‘corporate investment banking’, and therefore regarding this type of operations we say that we must leave it to those who have structured it to deploy it at their own pace and with maximum discretion,” has limited itself to assessing the head of Digital Transformation.
