Saudi Arabia’s largest telecom operator, STC Group, has revealed its intention to seek a seat on Telefonica’s board after acquiring a 9.97% stake in the Spanish telecom giant. The announcement was made in a filing with the U.S. Securities and Exchange Commission, six days after Telefonica unexpectedly replaced its CEO.
STC’s stake in Telefonica comes after a significant ownership shake-up at the Spanish company, which saw Telefonica’s largest shareholder, the Spanish government, buying a 10% stake through its state holding company SEPI. This move followed STC’s announcement in September 2023 that it planned to become a major shareholder. In response, Spanish holding company Criteria also increased its stake to 9.99%.
Telefonica’s recent management change, which saw CEO Jose Maria Alvarez-Pallete replaced by Marc Murtra, chairman of the defence company Indra, came at the request of SEPI. The shake-up has raised concerns among investors, as Telefonica’s shares have fallen by 4.3% since the announcement, with some wary of potential political interference.
