The president of Telefónica, José María Álvarez-Palletehas commented to the company’s board of directors on the details of the emergence of the Saudi group STC in the shareholding, in an ordinary meeting of the highest decision-making body of the company that was held this Wednesday morning, as indicated to Europa Press sources familiar with the meeting.
Some directors want to know if the Saudi group has already suggested its intention to claim a seat on the board of directors.
In this context, some advisors of the company have taken advantage of the opportunity to transfer their concerns around this operation – which went unnoticed until it was made public on September 5 -, such as, for example, knowing if the Saudi group intends to become a stable shareholder or if it is an opportunistic investor, and whether you have already suggested your intention to claim a seat on the company’s board of directors.
It has also been commented by some board members that STC’s entry into Telefónica with 9.9% of the shareholders (4.9% in shares and 5% in financial instruments) has occurred at a price that is too low. , specifically, around 2,100 million euros, which has led to its surprising emergence, orchestrated with Morgan Stanley in order for it to go unnoticed in the market.
On the Telefónica board of directors chaired by Álvarez-Pallete, they sit, as proprietary directors, Isidre Faine (Caixabank) and José María Abril (BBVA), in addition to 12 other independent, external or executive directors.
Meeting in the US
The meeting of Telefónica’s highest decision-making body took place a few days after Álvarez-Pallete maintained a second meeting with the STC leadership since the operation was made known.
Although the first took place in Riyadh the next day upon announcing the entry of STC into Telefónica’s shareholding in an express trip in which Álvarez-Pallete was accompanied by the operator’s CEO, Ángel Vilá, the second meeting It took place within the framework of an event in the United States organized by the GSMA – the global association of the mobile industry – last September 18.
It is worth remembering that Álvarez-Pallete chairs the GSMA board of directorsa body of which the CEO of STC is also a member, Olayan Alwetaid.
As indicated by the sources consulted by Europa Press, the two managers held a meeting within the framework of this forum organized by GSMA and, although no details of the conversation have emerged, it is assumed that they delved into the development of STC’s entry into Telefónica, a movement that to be completed It still has to be approved by the Government.
Pending government authorization
Due to Spanish regulations on foreign investments in strategic listed companies, to exceed 5% in Telefónica – with a large presence in the national defense sector – the Saudi group needs the Executive to give the green light to the operation.
However, as indicated earlier this week by the First Vice President and Acting Minister of Economic Affairs and Digital Transformation, Nadia Calvino, The Saudi group has not yet sent any official notification to the Executive, a communication in which, for example, it will have to indicate if it intends to request a seat on the board of directors of the company, among other details.
Along these lines, the sources consulted by Europa Press point out that STC is still preparing that document and that there is still no date set to send it to the Executive.
For this reason, accredited sources from the Executive have indicated to Europa Press that in the absence of an official communication, even It is premature to anticipate that conditions will be imposed on the operation in line with what was done in previous cases (such as the emergence of the IFM fund in Naturgy).
With its 9.9% stake, STC becomes the main shareholder of Telefónica, ahead of the stable core that they led until now BlackRock with 4.98%, BBVA (4.87%), and CaixaBank (3.5%).
Revaluation of 3% since the entry of STC
Telefónica shares ended the day this Wednesday at 3.865 euros, which represents a revaluation of 3.31% compared to the 3.741 euros at which they closed on September 5, the day the emergence of STC in the company.
However, the price of the Spanish operator rose by up to 9.3% on September 20, when it closed the day at 4.089 euros.
Related news
In this sense, it is worth noting that on September 22, the US fund BlackRock increased its short position in Telefónica to 0.6%, from the previous 0.5%, according to records from the National Stock Market Commission (CNMV).
In this way, the North American fund is betting on a drop in the price of the Spanish operator, which on September 19, two weeks after the emergence of STC in its shareholding, closed above four euros for the first time since past May 10.