STC reportedly drops plan to up stake in Spain's Telefonica to 9.9% (updated)

Shenandoah Telecommunications

30/10/2023 16:22

(Adds background in paragraphs 3-5)
       MADRID, Oct 30 (Reuters) - Saudi telecoms group STC
 7010.SE  is seeking to keep its current 4.9% stake in Spain's
Telefonica  TEF.MC  and no longer plans to convert the 5% it
holds in derivatives into voting shares, El Economista newspaper
reported on Monday, citing people familiar with the operation.
    Telefonica and STC declined to comment on the report. The
Spanish government also had no immediate comment.
    In September, Saudi Arabia's largest telecoms operator 
amassed a 9.9% stake worth 2.1 billion euros  ($2.23 billion) in
a move to become Telefonica's top shareholder, though it added
it did not intend to acquire control or a majority stake.
        STC's holding consists of 4.9% of Telefonica's shares
and financial instruments that give it another 5% in so-called
economic exposure to the company.
  
        As Telefonica is considered a defence service provider,
the Spanish defence ministry has a say in acquisitions and
holdings between 5% and 10% unless the buyer commits not to
request a seat on the board.
  

($1 = 0.9420 euros)

 (Reporting by David Latona, Belen Carreno, Jesus Aguado and
Inti Landauro in Madrid and Hadeel Al Sayegh in Riyadh; Editing
by Andrei Khalip)
 ((david.latona@thomsonreuters.com; +34 918 35 68 13;))