- Spanish investment group ties with the government as operator’s largest shareholder after gradually building up its position over last two years.
- CriteriaCaixa stake now sits at 9.99%, with additional slither of shares to be added following “administrative authorisations”.
- Shareholder shake-up continues following entrance of stc Group in September 2023.
Spanish investment group CriteriaCaixa has increased its interest in Telefónica to nearly 10%, up from 5%, making it the joint largest shareholder in the operator.
In a filing to national regulator Comisión Nacional del Mercado de Valores (CNMV), the investor disclosed the acquisition of shares representing 4.91% of the operator’s total capital, bringing its holding to 9.99%.
CriteriaCaixa intends to increase this to just beyond 10%, though noted that it requires certain “administrative authorisations” before it can do so.
Matching government moves
The move sees CriteriaCaixa become Telefónica’s largest stakeholder alongside the Spanish government, which also holds 10% of the operator through industrial investment vehicle Sociedad Estatal de Participaciones Industriales (SEPI), having incrementally built up its positionover the last two years (Telefónicawatch, #179).
CaixaBank, an investment firm that is majority owned by CriteriaCaixa with a near-59% stake, once held around 3.51% of Telefónica’s share capital, but has sold down its position over the last two years, disposing of the final 2.54% in mid-June 2024.
Spain on defensive after stc buy-in
The latest share purchase comes following the entry of Saudi telecoms group stc as a minority shareholder in Telefónica in 2023, which prompted both CriteriaCaixa and the Spanish government to increase their stakes in the telco.
In September, stc bought a 4.9% stake in the operator, over which it has voting rights, and has other “financial instruments” to obtain a further 5% of shares, should it receive regulatory approval for the move (Telefónicawatch, #177 and passim). As reported by El Confidencial, the group has recently submitted an official request for the Spanish government to authorise the move.
The Spanish government reacted defensively to stc’s play, and has said its re-entrance as a shareholder will bring “greater shareholder stability” to Telefónica, supporting it in reaching the objectives of its three-year Growth, Profitability, and Sustainability (GPS) strategy (Telefónicawatch, #178).
CriteriaCaixa has also stated that its investment in Telefónica is “strategic and long-term”, and its main objective is to provide the “highest shareholder stability” for the operator.
| Shareholders | Percentage of Telefónica share capital owned* |
|---|---|
|
Note: includes direct and indirect holdings. Source: CNMV. |
|
|
SEPI |
10% |
|
CriteriaCaixa |
9.9% |
|
stc Group |
4.9% |
|
Banco Bilbao Vizcaya Argentaria (BBVA) |
4.839% |
|
BlackRock |
4.807% |
|
Morgan Stanley |
0.007% (plus 12.171% voting rights through other “financial instruments”) |
While CriteriaCaixa has made no mention of either the Spanish government or stc following its share purchases, Spanish media reports have suggested it is keen to gain a firmer footing on Telefónica’s board to have a greater say over government decisions made through SEPI, while preventing stc from increasing its position.
It has since managed to secure a position on the Board of Directors, after Telefónica opted to re-elect Isidro Fainé Casas at the Group’s Annual General Meeting in April 2024. Following the move, Fainé now represents CriteriaCaixa rather than CaixaBank in his role as Vice-Chairman of the Board, alongside BBVA’s José María Abril Pérez.
