Saudi Telecom (stc) announces its plan to join Telefonica’s board of directors
Saudi Arabia’s telecom company, stc, announced on Thursday that it wants to join the board of Spain’s Telefónica. This shows its plan to increase its influence in the global telecom industry.
stc’s Investment
By securing a seat on the board, stc Group could have more influence in Telefónica’s decisions and help guide the company’s operations and future plans.
This comes just six days after Telefónica unexpectedly replaced its CEO, which might lead to new changes in the company’s strategy.
stc informed the US Securities and Exchange Commission that it now owns 9.97% of Telefónica and plans to “discuss” the possibility of getting a seat on the board, according to Reuters.
stc bought the shares in September 2023, becoming Telefónica’s largest shareholder. Telefónica also has shares listed in the US.
Ownership Changes
After stc’s purchase of shares in September 2023, there were changes in the ownership of Telefónica. In response, the Spanish government bought its own 10% stake through the state-owned company SEPI, while Spanish company Criteria also increased its stake to 9.99%.
SEPI bought over 567 million shares at an average price of $4.38 (€4.03) per share, spending around $2.5 billion. SEPI said the purchase followed the government’s instructions and was done to avoid affecting the share price too much, while also complying with regulations for major share purchases.
The Spanish government asked for a seat on Telefónica’s board on May 8 after buying a 7% stake, proposing Carlos Ocana, a former government official, to represent them.
Growth Plan
stc said its investment in Telefónica is a key step in its growth plan. They noted that Telefónica has valuable assets and advanced technology in areas like cognitive intelligence, edge computing, and the Internet of Things (IoT).
stc’s growth plan has involved several investments in the Information, Communication, and Technology (ICT) sector, both in Saudi Arabia and globally.
One of their latest investments was the purchase by their subsidiary, TAWAL, of three tower companies in Bulgaria, Croatia, and Slovenia for $1.3 billion (SAR 5 billion).
Published: 27th January 2025
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