stc gets Spanish Cabinet nod to up voting rights in Telefonica

Saudi telecom operator stc received today, Nov. 28, the foreign investment authorization from the Spanish Cabinet, allowing for the former’s increase in its voting rights in Spain-based Telefonica from 4.97% to 9.97% and the right to appoint a board member in the company.

In a statement to Tadawul, stc added that the change in its ownership from 9.9% (in the previous announcement) to 9.97% reflected Telefonica’s cancellation of shares in April 2024.

The Saudi-listed telco is currently completing the necessary steps to finalize the increase in its voting rights, which is slated for completion in the coming period. It noted that any further material developments in this regard will be announced in due course.

For his part, stc’s CEO Olayan Alwetaid said that obtaining the required approvals from the Spanish Cabinet underscored confidence in his company’s presence as a long-term strategic shareholder in Telefonica.

According to data available to Argaam, in September 2023, stc announced acquiring a 9.9% stake in Telefonica for €2.1 billion (around SAR 8.5 billion).