stc invested in Telefonica by acquiring a 9.97% interest in the company for a total consideration of EUR 2.1 billion (which is equivalent to % 8.5 billion), making stc Telefonica’s largest shareholder. Telefonica is a leading European telecommunications operator through its significant presence in three of the largest European markets, namely Spain, Germany and the UK, in addition to Brazil which is the largest market in Latin America.

This acquisition represents another milestone in stc’s expansion and growth strategy and reflects stc’s confidence in Telefonica’s sustainable growth and upside potential. Telefonica benefits from a unique portfolio of best-in-class infrastructure assets and cutting-edge technology platforms, where it is developing state-of-the-art capabilities in adjacent areas such as cognitive intelligence, edge computing and IoT.

During the year 2023, stc completed the purchase of 4.9% direct shareholding in Telefonica. During the fourth quarter of 2024, stc received the foreign investment authorization from the Spanish Council of Ministers. During the first quarter of 2025, stc has increased its voting rights from 4.97% to 9.97% following the completion of all relevant requirements. This investment is irrevocably designated at fair value through OCI.