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Basque consortium makes offer for 29.8% stake in Spanish train maker Talgo
Published by Global Banking and Finance Review
Posted on February 6, 2025
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Published by Global Banking and Finance Review
Posted on February 6, 2025
By Inti Landauro
MADRID (Reuters) -A Basque consortium comprising shareholders of steelmaker Sidenor, together with the regional government and local bank Kutxabank, on Thursday made an offer for a 29.8% stake in Spanish train maker Talgo.
The consortium, said it is offering to buy the stake from investment fund Trilantic, at up to 4.80 euros ($4.97) per share if Talgo meets certain financial targets in 2027 and 2028, according to a filing to the stock market regulator CNMV.
Trilantic is part of Pegaso Transportation which is Talgo's largest shareholder with a 40% stake.
The price offered by the consortium for the stake implies a maximum valuation of nearly 595 million euros for the entire company.
The consortium doesn't intend to buy more than 30% in the company and so will not have to make a public tender offer to buy shares from other holders.
Shares were up 1.2% at 3.96 euros in afternoon trading after CNMV lifted its suspension ordered in the morning after news reports about a potential offer led by Sidenor.
Talgo, which manufactures signature speed AVE high speed trains, has lately raised interest from investors as governments in Europe encourage rail transportation as a clean alternative to airplane and roads.
After the Spanish government in August blocked a 5 euro per share offer made by Hungarian consortium Ganz-Mavag for Talgo, Czech and Polish investors were discussed as potential buyers.
The government opposed the Hungarian bid, saying it entailed risks to national security, public order and public health, though it did not elaborate, though local media linked the government's veto to concerns over Hungarian Prime Minister Viktor Orban's close ties to Russia.
Sidenor had already disclosed an interest in Talgo in October.
($1 = 0.9654 euros)
(Reporting by Inti Landauro and Jesus Aguado; Editing by David Evans)