Bankinter | Last Friday, Pegaso, majority shareholder of Talgo (TLGO), announced the agreement for the sale of 29.7% of Talgo’s capital to the Consortium formed by Clerbil (Sidenor), Finkatze Kapitala Funlatuz, Fundación bancaria BBK and Fundación Bancaria Vital. The price will be €4.15 fixed and up to an additional €0.85 subject to the achievement of objectives. In statements this weekend by Imanol Pradales, President of the Basque Government, he said he expects the deal to close in about three weeks and for the new board to draw up a ‘great industrial plan’.
Bankinter research team’s view: The partial takeover deal is a change of control, but not a bid for minority shareholders. Our valuation aimed at €3.4/share in view of the increase in leverage (whose guidelines for the year are between 4-5x EBITDA 2024) due to the need for investments and financing of the portfolio in execution, the evolution of the sanction announced by Renfe; and an environment of margins that have not yet recovered the levels of previous years. Therefore, we maintain our Sell recommendation.
