MADRID (dpa-AFX) - Saudi Telecommunication Company or stc Group announced on Wednesday that it has acquired a 9.9 percent interest in Spanish telecommunication company Telefonica, S.A. (TEF) for 2.1 billion euros.
As per stc, the acquisition, which is another milestone in its expansion and growth strategy, reflects its confidence in Telefonica's sustainable growth and upside potential.
'We do not intend to acquire control or a majority stake but rather we see this as a compelling investment opportunity to use our strong balance sheet whilst maintaining our dividend policy,' the company said in a statement.
On the other hand, Telefonica benefits from best-in-class infrastructure assets and cutting-edge technology platforms, where it is developing capabilities in areas of cognitive intelligence, edge computing and Internet of Things.
On Tuesday, shares of Telefonica closed at $4.18 up 1.95% on the New York Stock Exchange
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