2023-09-05 22:29:42
Saudi Telecom Company (STC) said on Tuesday that it had bought a 9.9 percent stake in Spanish telecoms giant Telefonica for 2.1 billion euros ($2.25 billion) in shares. and financial instruments.
STC added in a statement that it does not intend to acquire a majority stake in Telefonica.
The Saudi Telecom Company is the largest telecom operator in the Kingdom and owns stakes in companies operating in Kuwait and Bahrain.
The company is 64 percent owned by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, the main driver of Crown Prince Mohammed bin Salman’s 2030 vision to reduce the economy’s dependence on oil.
Telefonica will present a new strategic plan on November 8 that focuses on boosting the company’s free cash flow, which the chief executive said might reach 4 billion euros ($4.3 billion) this year.
Telefonica, like its European competitors, has faced pressure on earnings due to stiff competition and the need for huge investments in 5G mobile technology infrastructure. It sold stakes in more mature companies such as submarine cables or mobile towers to finance fifth generation networks and fiber optics.
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