The US government has disclosed information that was not previously made public in Spain regarding the price paid to acquire Telefónica shares. According to a statement to the SEC, Sepi, the State Society of Industrial Participations, purchased 5% of Telefónica at an average price of 3.92 euros per share, which is a 4.5% increase compared to the Saudi state group STC’s average price of 3.75 euros per share. This investment amounts to nearly 50 million euros more, totaling approximately 1,135 million euros of public money dedicated to this incursion.
Investment banks had anticipated that Sepi would pay a higher price than STC for acquiring up to 10% of Telefónica shares in order to counteract the Saudi entry without first tying up the operation. As a result, there was an expectation that prices would revalue as there was a new voracious buyer in the market taking interest in Telefónica shares.
However, Sepi acquired the shares at an average price of 3.9185 euros and these purchases were financed with capital contributions made by the Spanish Public Treasury. The investment arm of the government confirms that Telefónica is crucial for Spain’s economy, productivity, research activities, security, defense and public interest. They also confirm that their advisors except for the Secretary of State for Economy do not have any shares in Telefónica. This investment safeguards Telefónica’s shareholding base and strategic capabilities.
