Spain Continues Building Its Telefonica Stake

The Spanish state investment company moved closer to its preferred 10% equity in Telefonica. The latest batch of shares bought take it to the 6% mark.

The state-owned Society of Industrial Participations (SEPI) announced it had informed the country’s stock market regulator CNMV of its latest purchases. SEPI is in the process of accumulating shares to reach an equity level of 10% in the operator, though is attempting to buy them in a way that minimizes “the impact on the price” and complies with associated regulatory requirements.

It announced the purchase of its initial 3% stake around a month ago. SEPI added its interest in the business provided greater shareholder stability to the company to achieve its objectives and contributed to the protection of the strategic capabilities of a key company in the telecommunications sector, noting the company’s knock-on role for industry and national security. The stake acquisition was instructed by the Spanish government three months after Saudi operator stc splashed €2.1 billion on a position in the operator.