SEPI continues to advance positions in Telefónica and would already have another 2% parked in financial instruments

MADRID, 26 Mar.

SEPI continues to advance positions in Telefónica and would already have another 2% parked in financial instruments


The State Society of Industrial Participations (SEPI), an entity dependent on the Ministry of Finance and through which the Government already owns 3.044% of Telefónica's share capital, would have parked another 2% more in financial derivatives, so, once to make them effective, their weight in the telecom would rise to 5%, as market sources have indicated to Europa Press.

They have also stressed that the Executive's intention is to bring out "shortly" that additional 2% deposited in a 'swap' and place the State's participation in the company at 5%, a weight in the telecom's share capital similar to that Right now they have Caixabank (if CriteriaCaixa's participation is added) and BBVA, two of the members of the so-called 'stable core' of Telefónica.

The SEPI has refused to comment on that 2% of Telefónica's capital in financial derivatives that is expected to surface shortly.

In this context, it is worth remembering that Telefónica will hold its next general meeting of shareholders on April 12, in which the "re-election, ratification and appointment, if applicable, of counselors."

Specifically, the re-election of Isidro Fainé, José Javier Echenique, Peter Löscher, Verónica María Pascual and Claudia Sender is planned, as well as the ratification of Solange Sobral and Alejandro Reynal, the latter two appointed on December 13.

The regulations of the Telefónica board stipulate that shareholders representing at least 3% of the company's share capital can request a supplement to the call by including one or more points on the agenda - although they could not be modifications that would imply appoint advisors--. However, this request must be made within five days of the publication of the call.

Therefore, this five-day period has already expired because the call was published on March 8, so the board will not be able to appoint directors other than those already included in the proposed resolutions on the agenda.

In this context, Telefónica's price has risen almost 1.83% in the stock market session this Tuesday, to 4.063 euros, although the investment momentum in the company increased during the day from the moment in which the Government spokesperson and Minister of Education, Vocational Training and Sports, Pilar Alegría, reiterated that the Executive's idea is to complete the purchase of 10% of the company "as quickly as possible."

In that sense, Alegría's intervention in relation to the situation of the State's entry into Telefónica through the SEPI occurred around 12:45 p.m. this Tuesday.

At that time, the operator's shares were around 3.99 euros, although as of 1:00 p.m. the price of the telecom company chaired by José María Álvarez-Pallete shot up almost immediately to around the 4.07 euros, until the session ends at 4.063 euros.

"What I can tell you is that, in terms of the deadlines to complete this purchase, it will be done as quickly as possible, in the shortest time possible, obviously, provided that, in addition, it does not affect the company's price," he said. Alegría stressed at the press conference after the Council of Ministers.

However, it should be noted that Telefónica's price had already had five consecutive days of increases before the one recorded this Tuesday.

Telefónica's price did not exceed 4,063 euros since September 21, 2023, a couple of weeks after the surprising arrival of the Saudi operator STC in the company, a situation that at that time also boosted the price of the operator's shares. .

In this context, the Government's decision to enter the share capital of Telefónica 27 years after its privatization was marked by the arrival of STC to the operator's shareholding with the purchase of a 9.9% stake - 4. 9% in direct shares and 5% in financial derivatives-- for 2.1 billion euros.

Specifically, at the end of last year the Executive ordered the SEPI (dependent on the Ministry of Finance) to acquire up to 10% of Telefónica and, precisely this past Monday, the organization revealed a stake of 3.044%.

At the current market price, the Government's shareholding in Telefónica is worth 711 million euros, about 11 million euros more than yesterday.

At the same time, the acquisition of the other remaining 7% (until 10% is complete) would have a cost of around 1,635 million euros, around 30 million euros more than yesterday.

The Government's decision not to present new General State Budgets for 2024 and to extend those of the previous year raised certain doubts about how the State was going to proceed to finance its entry into the Telefónica shareholding.

However, in the middle of this month the Government assured that the order transmitted to the SEPI last December "is maintained" despite this decision by the Executive.

Once the route of financing participation via Budgets has been frustrated, the Government has other options to carry out the operation (through an increase in debt, for example), although it has not yet revealed which one it has opted for.