Spain Weighs Placing Conditions on Saudi’s Telefonica Stake Bid - Bloomberg
The Spanish government is considering imposing conditions on Saudi Telecom Co.’s acquisition of a 9.9% stake in Telefonica SA similar to those placed on previous deals, such as limits on asset sales and dividend payments, according to a person familiar with the matter.
The provisions may include some of those applied in 2021 to the purchase of 23% of Naturgy Energy Group SA by Australian fund IFM Global Infrastructure, said the person, who asked not to be identified discussing confidential information.
Those conditions included backing for certain corporate policies, such as investment in projects deemed important for the nation, maintaining the legal registry and headquarters of Naturgy in Spain, a cautious dividend policy and an investment-grade leverage ratio. The buyer was also required to refrain from backing sales of critical assets or supporting any proposal to take the company private.
A final decision about the Telefonica stake has not been made and the government could decide to apply different conditions, the person added.
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