Renta 4 | Talgo has informed the CNMV (Spanish Securities Market Commission) that today it has executed the sale agreement whereby Trilantic, through its vehicle Pegasus International, has transferred its 29.76327% stake in Talgo to the Basque consortium formed by Clerbil, S.L., Finkatze Kapitala Finkatuz, S.A., Fundación Bancaria BBK and Fundación Bancaria Vital – Vital Banku Fundazioa.
In addition, the following changes have been made to the composition of the board of directors:
- Appointment of José Antonio Jainaga as proprietary director to replace María José Zueco Peña.
- Appointment of María Teresa Echarri López as proprietary director to replace Mario Álvarez García.
- Gonzalo Urquijo has stepped down as executive director and chief executive officer, but will retain his position on the board of directors.
- The company’s registered office has been moved from Paseo del Tren Talgo number 2, 28290 Las Matas, Madrid, to Calle Cuchillería, 24, Casa del Cordón, 01001, Vitoria-Gasteiz, Álava.
The resolutions approved at the Extraordinary Shareholders’ Meeting held on 12 December have been implemented. The resolutions implemented are as follows:
- Capital increase of €44.99 million, excluding pre-emptive subscription rights. This increase has been fully paid up by SEPI.
- Issue of 300 bonds convertible into shares for a nominal amount of €300 million, excluding pre-emptive subscription rights, as well as the capital increase related to the issue. This issue has been fully paid up by SEPI.
- Issue of 750 bonds convertible into shares for a nominal amount of €750 million, excluding pre-emptive subscription rights, as well as the capital increase related to the issue. This issue has been fully paid up by CLERBIL, S.L., EKARPEN PRIVATE EQUITY, S.A., BILBAO BIZKAIA KUTXA FUNDACIÓN BANCARIA, and FUNDACIÓN BANCARIA VITAL-VITAL BANKU FUNDAZIOA.
- Execution of the Talgo Group financing operation, consisting of the formalisation by Patentes Talgo, S.L.U. of a syndicated financing agreement for a total amount of up to €770 million, broken down into a tranche of up to €650 million with partial guarantee from CESCE and a revolving tranche of up to €120 million. In addition, a line of guarantees of up to €500 million with partial guarantee from CESCE, within the framework of the so-called ‘Global Operation’ together with the capital increase and the convertible bond issues subscribed by SEPI and the Basque investor group.
Assessment: This is positive news, as it completes the change of ownership at Talgo and resolves financial uncertainties. From this point onwards, we await the presentation of a strategic plan that will shed light on the execution of the order book.
We reiterate our recommendation and target price of Under Review.
