Saudi Arabia’s STC Group to become Telefonica top shareholder with 9.9% stake

LONDON/DUBAI: Saudi Arabia’s STC Group has amassed a 9.9% stake in Telefonica worth 2.1 billion euros ($2.25 billion), in a move to become the Spanish telecom giant’s top shareholder.

STC, the kingdom’s largest telecoms operator, unveiled the investment on Tuesday after market hours. The 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.

STC plans to secure voting rights for that 5% interest held through financial instruments after receiving regulatory approvals, the company said.