LONDONDUBAI Reuters Saudi Arabia39;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 giant39;s top shareholder.

STC, the kingdom39;s largest telecoms operator, unveiled the investment on Tuesday after market hours. The holding consists of 4.9 of Telefonica39;s shares and financial instruments that give it another 5 in socalled 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.

We see this as a compelling investment opportunity to use our strong balance sheet whilst maintaining our dividend policy, STC CEO Olayan Alwetaid said in a statement, adding it doesn39;t intend to acquire control or a majority stake.

Telefonica said it was informed of STC39;s investment on Tuesday, describing it as friendly.

STC built the position with the help of U.S. investment bank Morgan Stanley, two sources familiar with the situation told Reuters.

Linklaters acted as legal adviser to STC and Allen Overy acted for Morgan Stanley, they added.

Morgan Stanley, Linklaters and Allen Overy declined to comment.

STC is Saudi Arabia39;s largest telecoms operator and also owns subsidies and has stakes in companies operating in Kuwait and Bahrain.

It is 64 owned by Saudi Arabia39;s Public Investment Fund PIF, the main engine of Crown Prince Mohammed bin Salman39;s Vision 2030 to wean the…