STC seeks board seat after raising Telefónica stake

STC seeks board seat after raising Telefónica stake

Saudi Arabia’s STC Group is seeking a board seat in Spain’s Telefónica after increasing its stake in the telco to 9.97 percent.

Discussions will be held to secure a seat on the 15-member board, the Spanish company said in a filing with the US Securities and Exchange Commission.

In November 2024, STC, which is backed by the Public Investment Fund, received the green light from the Spanish government to increase its stake in the telecom group Telefonica.

The Saudi company invested SAR8.5 billion ($2.25 billion) to raise its holding to 9.9 percent in September 2023.

Spain was aligned with STC in supporting an overhaul at Telefónica, economy minister Carlos Cuerpo told Financial Times.

He said the government, STC and other shareholders had a “common” long-term strategy for the €21 billion Telefónica.

Last week, the Spanish telecom operator’s board sacked José María Álvarez-Pallete as chairman, supported by the government, STC and Spain’s CriteriaCaixa.

The Spanish government and CriteriaCaixa each own 10 percent of Telefónica.

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