STC, Through Luxco, Boosts Telefónica Stake to 9.97%, Aims for Board Seat Amid Leadership Change

Jan 24, 2025, 09:11 AM

Saudi Telecom Company (STC) has informed the U.S. Securities and Exchange Commission (SEC) that it now controls a 9.97% stake in Telefónica, up from a previous 4.9%, through its wholly-owned subsidiary Luxco, officially known as Green Bridge Investment. This increase in ownership was authorized by the Spanish government in November of the previous year. STC, which completed the acquisition of 565.28 million shares on January 17 via a deal with Morgan Stanley, has expressed its intention to seek a seat on Telefónica's board of directors. The move comes shortly after the departure of José María Álvarez-Pallete from the presidency of Telefónica, with Marc Murtra taking over the role. STC's acquisition, backed by the Public Investment Fund, is for investment purposes, positioning it as a significant shareholder, second only to the Spanish state's Sociedad Estatal de Participaciones Industriales (SEPI), which holds a 10% stake in Telefónica.