Banc Sabadell | Talgo (TLGO) minority shareholders, through the AEMEC, have criticised the entry of the State Company for Industrial Investments (SEPI) as they believe it could have benefited from the takeover bids, which did not materialise, according to press reports. SEPI’s entry through a rights issue prevents them from benefiting from this option.
In addition, AEMEC also believes that there could be concerted action between SEPI and the Basque consortium/Sidenor, given that one of the conditions for the former to subscribe to the increase is that the Basque consortium acquires the 29.7682% of Talgo held by Pegaso Transportation Int. In this case, as they would exceed 30% of the capital, they would have to launch a takeover bid for 100%, a scenario that both SEPI and the consortium want to avoid.
Assessment: This is negative news as it adds pressure to the final resolution of this process. That said, we would point out that it will be the National Securities Market Commission (CNMV) that will make the final decision once both transactions (the entry of SEPI and Sidenor and the Basque consortium) have been completed. The Extraordinary Meeting to approve SEPI’s entry is scheduled to take place in September.
