Unveiling New Buyer: US Reveals Spanish Government’s $1.1 Billion Investment in Telefónica Shares

The US government has disclosed new data regarding the price paid to enter Telefónica, which was previously not made public in Spain. According to a statement to the SEC, the State Society of Industrial Participations (Sepi) purchased 5% of Telefónica at around 3.92 euros per share, which is 4.5% more than the Saudi group STC paid for the same package of shares. In total, Sepi has dedicated approximately 1,135 million euros of public money to this investment.

This revelation caused speculation that prices would rise due to a new buyer entering the market. Telefónica’s shares rose above 4.1 euros per title in response to the news. The Saudi group had previously purchased or tied up around 9.9% of Telefónica at a lower price of 3.75 euros per share on average.

According to information provided to the SEC, Sepi acquired the shares as part of an order from the Spanish government to acquire up to 10% of Telefónica’s shares in order to promote stability and safeguard strategic interests. The Spanish Public Treasury financed these purchases with capital contributions.

Sepi affirms that Telefónica is crucial for Spain’s economy, productivity, research activities, security, defense, and public interest. The government advisors do not hold any shares in Telefónica except for Secretary of State for the Economy Israel Arroyo who holds 379 shares.

The US government’s decision to reveal this data could have significant implications for both Spain and its telecommunications industry giant, Telefónica.

The Saudi group had previously been seen as a potential competitor for control over Telefónica’s assets and operations in Europe.

However, with Sepi now entering the market at a higher price point than STC did before it withdrew its offer earlier this year,

It appears that Sepi is determined to acquire a larger stake in Telefónica than what was originally intended by the Spanish government.