On Tuesday, Pilar Alegra, the Government spokesperson, announced at a press conference that the Executive expects the State Society of Industrial Participations (Sepi) to acquire 10% of Telefónica in a short period. However, Alegra’s statement had the opposite effect and caused Telefónica’s shares to rise for the first time since May 2023. The shares reached 4.08 euros by 4:30 p.m., representing a 2.26% increase.
The rush to complete the operation could potentially increase the final cost by tens of millions of euros, as Sepi will need to disburse an additional 1,600 million euros to reach the 10% ownership stake. The initial estimated cost was only 2.1 billion euros.
Sepi currently holds a 3% ownership stake in Telefónica and this is valued at over 700 million euros at market price. To reach a 5% stake in the capital, an additional 1,600 million euros needs to be invested.
This development has significant financial implications for the government compared to the initial estimated cost of buying out Telefónica’s shares.
In light of these developments, it is crucial for all stakeholders to closely monitor the situation and its potential impact on the telecommunications industry and the government’s budget.
