In a significant move to bolster its international investment portfolio, stc Group, Saudi Arabia's leading digital enabler, has announced that it has received formal approval from the Spanish Council of Ministers to increase its voting rights in Telefónica.
With this approval, stc's stake in the telecommunications giant will rise to 9.97%, and the company will gain the right to appoint a representative to Telefónica's Board of Directors. This governance will allow stc Group to engage directly with Telefónica's decision-making processes and help shape the company's strategic direction.
The approval comes following stc Group's previously disclosed acquisition of a stake in Telefónica. It marks a key milestone in the company's strategy to strengthen its position as a major global investor.
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stc Group's decision to expand its stake in Telefónica aligns with its strategy to diversify investments in high-quality assets and strengthen its global digital presence. Telefónica's strong infrastructure and leading role in telecommunications across multiple markets make it an attractive opportunity. The Spanish government's approval reflects confidence in stc Group's positive contribution to Telefónica's future. By increasing its stake, stc Group becomes one of Telefónica's largest shareholders, enhancing its partnership with a major global telecom provider operating in over 14 countries, including key markets in Europe and Latin America.
"Obtaining the required approvals from the Spanish Council of Ministers reflects stc’s role as a long-term strategic partner in Telefónica. As one of the company’s largest shareholders, we remain confident in Telefónica’s leadership and strategic outlook, and we look forward to working together to unlock value for all shareholders," noted Olayan Alwetaid, CEO of stc Group.
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stc Group's increased investment in Telefónica comes in the wake of the telecommunications industry’s significant transformation, which is being driven by technological advances and the increasing demand for high-speed connectivity, data services, and digital infrastructure.
For stc Group, which has a history of investing in innovative and high-growth sectors, this partnership with Telefónica represents a solid and forward-looking investment. As both companies navigate the complexities of the global telecommunications market, stc Group is well-positioned to collaborate with Telefónica on emerging technologies, digital services, cross-border technological innovations, and infrastructure projects that will help drive the future of connectivity.
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