The State borders on the director in Telefónica after reaching 6% of the shares

The State Company of Industrial Participations (Sepi) has acquired 6% of Telefónica’s shares, marking a significant milestone in the State’s involvement in the telecommunications operator. This move comes 25 years after the privatization, as the threshold for having a director representing the State on the board is 6.7%.

Sepi has notified both the National Securities Market Commission (CNMV) and the US Securities and Exchange Commission (SEC) about the acquisition, although only the latter is mandatory since the Spanish supervisor’s threshold is 7%.

The company stated in its announcement, “This information is being voluntarily communicated to avoid any information asymmetry in accordance with regulations applicable in other jurisdictions and Spanish regulations.” The total stake declared in the US amounts to 6.169%.

The recent notification to the US market supervisor also revealed additional details that were not previously disclosed to the Spanish supervisor. Notably, the Government paid 50 million euros more than the Saudis for the same package due to the stock’s revaluation, which has continued to thrive.

With the current price of 4.16 euros per share, the security remains at levels not seen since August 2022. However, some analysts believe there is room for further growth, while others predict a decline once Sepi’s buying impulse subsides. Nevertheless, the average price paid by the Government for each share continues to rise. In the most recent notification, the price per share was 3.937 euros, higher than the previous 3.9185 euros paid.

This latest announcement also indicates that the pace of the Government’s acquisitions of Telefónica shares has remained relatively stable, with a 1% increase over seven trading sessions. This progression brings the Government closer to completing the acquisition of 10% of the operator by the end of May.