The company has clarified that it has no intention of acquiring control of Telefónica


STC Group, the main Saudi operator, has acquired a 9.9% stake in Telefónica for a total amount of 2,100 million euros, as reported in a statement on Tuesday.

The investment has been made through the acquisition of shares representing 4.9% of Telefónica’s share capital and financial instruments that confer economic exposure to another 5% of Telefónica’s share capital. STC Group will obtain the voting rights corresponding to that 5.0% through the physical liquidation of the aforementioned financial instruments after obtaining the necessary regulatory authorizations.

From the company they have clarified that they have no intention of acquiring control or a majority stake in Telefónica. “This is a great investment opportunity that allows us to use our solid balance sheet while maintaining our attractive dividend policy,” they pointed out.

In addition, as they have highlighted, this acquisition represents “another important milestone” in its expansion and growth strategy, and reflects confidence in Telefónica’s sustainable growth and upward potential.

As part of its growth strategy, STC has made a series of investments in the information, communication and technology sector, both in Saudi Arabia and abroad, the most recent being the acquisition by its subsidiary Tawal of the assets of United Group telecommunications towers in Bulgaria, Croatia and Slovenia.

The president of STC Group, Mohammed K. A. Al Faisal, has commented that his company shares many similarities with Telefónica. “This important long-term investment by STC Group is aligned with our growth strategy, according to which we invest in sectors such as technology and digital infrastructure in markets that we consider promising around the world,” he said.