The Government emphasizes the strategic nature of Telefónica and avoids talking about a possible entry of the SEPI

Sabadell considers that the option for SEPI to acquire 5% of the operator would be "good news"

MADRID, 30 Oct. (EUROPA PRESS) -

The Government spokesperson and acting Minister of Territorial Policy, Isabel Rodríguez, has reiterated the strategic nature of Telefónica for Spain and has avoided commenting on the possible entry of the State Society of Industrial Participations (SEPI) - dependent on the Ministry of Finance - - in the company's share capital, together with a group of Spanish investors.

"It is a strategic company for Spain due to its role in the field of telecommunications, but also in the field of defense. We are not going to comment on each of the information that is published about these operations due to the prudence required by the strategic relevance of the same," Rodríguez stressed in the press conference after the Council of Ministers this Monday.

"The Government is defending this strategic interest for our country, while we are attracting foreign investments to attract new technologies, innovation, growth and the creation and generation of quality employment that this type of companies entails in our country and of their new investments," he added.

Analysts at Banco Sabadell consider that a possible entry of SEPI into Telefónica would be "good news" and, although "there is no greater specificity about this possible operation", the operator's price rose by 2.63% around 11:45 a.m. this Monday.

In that sense, the acting Government would be analyzing options to reinforce the Spanishness of Telefónica, among which would be an eventual takeover of a 5% stake in the company's capital, led by SEPI and in coordination with other national investors, according to points out information published by the newspaper 'El Confidencial'.

The objective of this movement would be to "preserve national interests" in the operator after the landing of the Saudi group STC in the company, which on September 5 announced that it had acquired 9.9% of Telefónica - 4.9% in shares and 5% in derivatives--, although the operation must still be approved by the Government to be completed.

"Although there is no greater specificity about this possible operation (in relation to the entry of the SEPI), we cannot rule it out, given that it would be in line with the Government's statements in which it alluded to the need to protect national interests and there are precedents for this intervention in companies considered strategic (Indra)", say the Sabadell analysts.

"The news would be positive, if confirmed, to the extent that it would allow the approval of the purchase operation of 9.9% of Telefónica's capital by the Saudi STC (which already owns 4.9%), thus avoiding the 'overhang' of a potential divestment if denied, while providing greater stability to the company's shareholders," they added in their assessment.

In this context, Telefónica shares were trading at 3.664 euros at around 11:45 a.m. this Monday, 2.63% more than the 3.57 euros at which they closed last Friday.

However, Telefónica's price is currently below the 3,751 euros at which the company closed the session on September 5, the day the entry of STC into its share capital as the main one was announced. shareholder, ahead of BBVA 4.87%, BlackRock 4.48% and Caixabank (3.5%), in addition to Criteria Caixa with 2%.

In this way, and taking the current price of Telefónica shares as a reference, taking 5% of Telefónica's share capital would mean the disbursement of around 1,000 million euros.