Saudi Arabia's telecommunications company STC Group has become the largest shareholder in Madrid-based Spanish multinational Telefónica, by purchasing 9.9 percent of the company for 2.1 billion euros.

In a written statement from Telefonica, it was announced that the shares representing 4.9 percent of the company's capital and the financial instruments representing the other 5 percent were purchased by STC Group for 2.1 billion euros. STC Group CEO Olayan Alwetaid announced that they did not intend to acquire control or a majority stake in Telefonica, saying, "This operation is a great investment and dividend policy opportunity that allows us to use our solid balance sheet and protect our assets." Before the Saudi telecommunications company's operation, the first shareholder of Telefonica was BBVA bank with a 4.87 percent share, followed by US fund BlackRock (4.48 percent) and Caixabank (3.5 percent). STC will acquire the voting rights corresponding to 5 percent in Telefonica through the physical liquidation of the financial instruments after the necessary permits are obtained. STC Group, which is traded on the Saudi Arabian Stock Exchange with a market value of 49.2 billion euros, is known as the leader of the telecommunications sector in the Middle East and also has investments in Bulgaria, Croatia and Slovenia.